Certificate of Analysis vs. Certificate of Quantity and Quality: Is It a Discrepancy?

Introduction

In documentary credit examination, a question may arise when the credit requires a specific type of certificate, but the presented document bears a different title.

For example, the credit requires a “Certificate of Quantity and Quality”, while the presented document is titled “Certificate of Analysis”.

At first sight, the two titles do not appear to be similar. Does the difference in title constitute a discrepancy?

ISBP 821 Q1 provides useful guidance, and ICC Technical Advisory Briefing No. 8 further explains that the function of the certificate and the certification of the relevant results are key considerations.

Question

Dear Mr. Old Man,

May I ask you a question?

A documentary credit requires:

“Certificate of Quantity and Quality.”

The presented document is titled:

“Certificate of Analysis,”

and is signed by an inspector of Company A.

Is the presentation complying, or is it a discrepancy?

Best regards,

LT

______

Answer

Dear LT,

Thank you for your question.

The presentation of a “Certificate of Analysis” is not, by itself, a discrepancy merely because the credit calls for a “Certificate of Quantity and Quality.”

ISBP 821 Q1 provides that the requirement for a certificate may be satisfied by a signed document titled as called for in the credit, bearing a similar title, or untitled, provided that it fulfils its function by certifying the outcome of the required action.

ICC Technical Advisory Briefing No. 8 further explains that the relevant functions include the results of analysis, inspection, health, phytosanitary, quantity or quality assessment, and emphasizes that the determination of compliance is based on the terms and conditions of the documentary credit.

Therefore, the fact that the document is titled “Certificate of Analysis” rather than “Certificate of Quantity and Quality” does not, in itself, constitute a discrepancy.

If the presented Certificate of Analysis also certifies the required quantity and quality, and does not conflict with the data contained in other presented documents, thereby fulfilling the function of the certificate required by the credit, the document is complying.

Conversely, if the Certificate of Analysis only provides analytical results and does not certify the required quantity and/or quality as required by the credit, the document would not fulfil the function required by the credit and may therefore be discrepant.

The key point is that the examination should not stop at the title of the document. The document must be assessed as to whether it fulfils the function required by the credit and certifies the relevant results.

So, in the case described, if the Certificate of Analysis also certifies the required quantity and quality, without conflicting with the data contained in other presented documents, it is complying.

Best regards,

Mr. Old Man