Can an Invoice Include Handling Charges?

Intro

Invoices are always a hot spot in LC presentations. Readers often ask me whether certain “extras” on an invoice might cause problems under UCP 600. Recently, Priya sent me a good one: handling charges. Let’s see how this plays out.

QUESTION

Dear Mr. Old Man,

I came across an invoice where the goods are kitchen equipment. The invoice gives a detailed description of the items shipped, and in-between those goods it mentions “Handling Charges.”

Is this acceptable?

Thanks and best regards,

Priya

_______

ANSWER

Dear Priya,

Thanks for the question.

An invoice may include items such as “handling charges” in addition to the description of the goods, provided these do not conflict with the terms of the credit. Under UCP 600, additional details are permitted so long as the description of the goods is not inconsistent with what the LC requires.

Mr. Old Man