Home Mr Old Man EXAMPLES TO ILLUSTRATE SUB-ARTICLE 30 (b)

EXAMPLES TO ILLUSTRATE SUB-ARTICLE 30 (b)

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QUESTION

Dear Mr. Old Man,

I’ve found your answer concerning sub-article 30 (c) UCP 600 very useful.

I urgently need some detailed examples of the same article but for sub-article (b). namely…. provided the credit does not state the quantity in terms of:

– a stipulated number of packing units; or

– individual items.

Pls give some examples (10,000 kg ,100 MT, 100 cars, 120 bales, 100000 envelopes) and many others.

Are they related to countable and uncountable nouns or what?

Thanks

Pitman Indonesia

——————-

ANSWER

Hi,

Firstly, you need to differentiate what types of quantity or goods are considered as individual items or packing units and what types of goods are not individual items or packing units.

Example (1): 2000 hand watches, 1500 computers, 100 cars… are types of individual items.

Example (2): 12,000 boxes, 1000 pallets, 5,000 bales, 500 barrels…  are considered as types of packing units.

Example (3): 10,000 MT of urea fertilizer, 15,000 gallons of oil, 5,000 MT of rice… are not types of individual items or packing units.

Sub-article 30(b) does not apply to the case where the quantity is stated in terms of a stipulated of packing units or individual items as explained in example (1) and example (2) above. It applies to the situation where the quantity of goods is subject to cubic or weight measurements like cubic meters, gallons, kilograms, metric tons… as explained in example (3). In this situation the beneficiary may ship up to 5% less or 5% more than the stipulated quantity provided the total amount of drawings does not exceed the L/C amount.

LAST BUT NOT LEAST

Individual items like hand watches, computers, cars, envelopes… are countable nouns. Oil, bitumen… are unaccountable nouns, but they become countable nouns when referred to as barrels of oil, barrels of bitumen.

Best regards,

Mr. Old Man

————-

THANK YOU MAIL FROM PITMAN

Dear Mr. Old Man,

Thank you very much indeed for your explanation. Because sub-article 30 (b) and (c) has been the most difficult all over UCP 500  and 600 for me and most of people involved in UCP. Now, it is no longer.

Thank you again.

Pitman

Bandung Indonesia

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8 Comments

  1. anonymous

    May 31, 2013 at 9:05 am

    NMHOANH writes:Dear Mr. Old Man. Yr explanation is highly valuable and appreciated

    Reply

  2. mroldmanvcb

    May 31, 2013 at 1:05 pm

    Thank you.

    Reply

  3. TRANG

    August 17, 2021 at 9:30 am

    HI MR.OLD MAN, I READ YOUR BLOG EVERYDAY, IT HELPS ME A LOTS, YOU ARE SO ADORABLE
    I HAVE SOME CONFUSION ABOUT UCP 600 ARTICLE 30 (B) AND (C) AND REALLY NEED YOUR EXPLAINATION
    1.CAN YOU EXPLAIN WHEN WE APPLY ARTICLE B OR C
    + ARTICLE (B) REFER TO QUATITY
    + ARTICLE (C) REFER TO CREDIT AMOUNT
    EXAMPLE: A L/C STIPULATE BELOW:
    QUANTITY: 200,000 KGS. UNIT: 2.00USD/KG
    AMOUT: 400,000 USD
    AND DON’T STIPULATE TOLERANCE BOTH QUALITY AND CREDIT AMOUNT, SO WILL I APPLY ARTICLE B OR APPLY ARTICLE C IN THIS QUERY?
    2. ARTICLE (B) CAN YOU GIVE ME A EXAMPLE WHEN QUALITY PLUS 5% TOLERANCE BUT AMOUNT OF THE DRAWINGS STILL NOT EXCEED THE AMOUNT OF THE CREDIT. BECAUSE AMOUT = QUATITY X UNIT
    THANKS YOU SO MUCH

    Reply

    • Mr Old Man

      August 18, 2021 at 5:36 am

      Hi,

      Question 1

      Sub-artivle 30 (b) is applicable to the quantity, hence, goods can be shipped from 190,000 KG to 210,000 KG.

      In your specific case, sub-article 30 (c) is not applicable.

      Question 2

      Sub-artivle 30 (c) is applicable to the following case:

      LC indicates a breakdown of CIF value, e.g., FOB cost USD 120,000, Freight USD 75,000, Insurance USD 5000 = Total CIF USD 200,000. At this time, the freight and insurance are estimated costs.

      The presented invoice shows, e.g., FOB cost USD 120,000, Freight USD 72,000, Insurance USD 4000. At this time, the actual freight and insurance costs are less than the estimated costs.

      The drawing of USD 196,000 is made, which is less than the LC amount.

      Bes regards,
      Mr. Old Man

      Reply

      • Trang

        August 11, 2022 at 4:22 am

        Hi Mr.Old Man, can i ask more at question 1, if goods shipped 210,000 KG so how many money does applicant must to pay according ucp article 30 (b) (the total amount of the drawings does not exceed the amount of the credit. )
        Thanks you so much. I always admire your knowledge

        Reply

  4. Mr Old Man

    August 12, 2022 at 3:40 am

    1/ Invoice may show total amount higher than LC amount but drawing amount must not exceed LC amount. Please also refer to sub-article 18 (b).

    Reply

  5. Faisal Zaheer

    December 6, 2023 at 1:08 pm

    Mr Old Man ,

    For artical 30(b) tolerance +5/-5 to quantity (100 mt oil) unit price 630 per mt Credit amount $63000,
    for e.g invoice present with quantity 104 mt oil total amount not exceed the credit amoutn which is $ 63000
    then unit price per mt will be $605.7692 per mt .

    does invoice has discrepancy ? Pls guide

    Reply

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