Uncategorized A CERTIFICATE MUST BE ISSUED BY THE ENTITY STATED IN THE CREDIT By Mr Old Man Posted on August 29, 2013 4 min read 6 0 6,807 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, Please help me this case L3 (c) (i) ISBP 745 states that when a credit requires the presentation of a certificate of origin issued by the beneficiary, the exporter or the manufacturer, this condition will also be satisfied by the presentation of a certificate of origin issued by a Chamber of Commerce or the like, such as, but not limited to, Chamber of Industry, Association of Industry, Economic Chamber, Customs Authorities and Department of Trade or the like, provided it indicates the beneficiary, the exporter or the manufacturer as the case may be. How about Analysis, Inspection, Health, and other certificates (“certificate”)? When a credit requires the presentation of a certificate, e.g., certificate of inspection, issued by the beneficiary, the exporter or the manufacturer, is it a discrepancy if the certificate of inspection presented is issued by an independent/official entity other than the beneficiary/exporter/manufacturer? Please refer me to articles of UCP or paragraph of ISBP that support your view. Thank you very much. AT———— ANSWER Hi, Yes, it’s a discrepancy. Paragraph L3 (c) (i) applies to certificate of origin only. Regarding the issuer of Certificate of Analysis, Certificate of Inspection, Certificate of Health… paragraphs Q3, Q4 and Q5 states as follows: Q3: A certificate is to be issued by the entity stated in the credit.Q4: When a credit does not indicate the name of the issuer, any entity including the beneficiary may issue a certificate.Q5: When a credit makes reference to an issue of a certificate in the context of its being “independent”, “official”, “qualified” or words of similar effect, a certificate may be issued by any entity except the beneficiary. The provision in paragraph Q5 complies with Article 3 UCP 600, which says: “Terms such as “first class”, “well known”, “qualified”, “independent”, “official”, “competent” or “local” used to describe the issuer of a document allow any issuer except the beneficiary to issue that document”. So, to conclude, when a credit requires presentation of a certificate of analysis, a certificate of inspection or a certificate of health issued by the beneficiary, the exporter or the manufacturer, such a certificate is to be issued by the entity stated in the credit, i.e., by the beneficiary, the exporter or the manufacturer as the case may be. Best regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?