AMBIGUOUS REQUIREMENT

QUERY
Cert of Quality issued by an independent surveyor at Loading port

Dear sir,

L/C require :
–shipment from port A to port B
–certificate of quality issued by an independent surveyor at loading port, in duplicate
presented document: (certificate of quality)

point 1) certificate of quality with title "certificate of quality issued by an independent surveyor at loading port"
point 2) certificate of quality has indicated that goods located at port A, sample received before loading.
point 3) certificate of quality indicating the issuer's address (letterhead) located at shanghai
issuing bank raised up discrepancy

–certificate of quality showing surveyor located at shanghai instead of port A.
please comment is it right

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MR. OLD MAN'S COMMENT
Just to add

Hi W.

I agree to Shahriah’s, Armagedo’s and Frammi’s comments but I would like to add something.
What is the buyer’s intention when he requires a certificate of quality to be issued by an independent surveyor at loading port?

IMHO, he wants the survey/inspection to be done at loading port.
Why does the buyer want the inspection to be done at loading port but not at other places e.g., at the seller’s or supplier’s warehouse?
It is no doubt that he is afraid that the goods actually shipped may not be the same as the goods inspected at the seller’s or supplier’s.
However, the wording “a certificate of quality (to be) issued by an independent surveyor at loading port” is not clear enough to convey his intention to the seller. This ambiguous requirement can be satisfied by any of the following:

(i) a statement in the certificate of quality stating that the goods has been surveyed/inspected by an independent surveyor at the loading port, i.e., Port A. (The place of issuance of the certificate may not be indicated or may be indicated as a place other than Port A).
(ii) a statement or an indication in the certificate of quality stating or indicating that the certificate of quality is issued by an independent surveyor at Port A. (The place of survey/inspection of the goods may not be indicated or may be indicated as a place other than port A).
(iii) the certificate of quality issued by an independent surveyor whose office is located at Port A.
….

To avoid the ambiguity and if the buyer intends that the goods are to be surveyed/inspected at the loading port by an independent surveyor, he should indicate this requirement clearly in the L/C, e.g., the goods must be surveyed/inspected at the loading port by an independent surveyor and a certificate to this effect is required for negotiation.

Best regards,
Nguyen Huu Duc
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OTHERS' COMMENTS
no reason to refuse

I find no reason to refuse the document.
1. The title of the document is not important.
2. Letterhead address doesn’t necessarily mean that the survey was taken place at shanghai. It’s very common to have letterheads with address of head office
or so. Besides to me indication that samples were received from port A is
sufficient.
3. Letterhead address is a part of the title and bank is not supposed to examine that.
4. In a nutshell, to me the certificate is just ok.

Shahriar
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Armagedo

IMHO

Hi!

Oh, great English language used worldwide and interpreted locally :))))
If I would be a presenter preparing docs, I would 100% sure that issuing bank meant just LOADING PORT surveyor (as the presenter did).
But, looking onto the answer/discrepancy noticed now we may see that there was an ambiguity/dilemma for this certificate, i.e.:
1/ Certificate to be issued by LOADING PORT independent suveyor.
2/ Certificate to be issued by independent surveyor LOCATED/SITUATED at loading port

What issued bank has meant initially???
Noone knew except issuing bank.
Unfortunately, I cannot find under UCP600/ISBP any mention in reg obligation of the issuing bank for any ambiguities in its instructions.

Which means that it is upto beneficiary (with support of advising/nominated bank) to find out such misunderstanding/ambiguity while checking credit terms and conditions. And, if something wrong or incomprehensible, to apply for clarification and/or amendment in time.

Under such circumstances it seems that the issuing bank is formally right (due to its meaning of the terms) and the only way is to negotiate with applicant for the acceptance of discrepancies.
Good luck
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Frammi

In dubio contra stipulatorem
meaning "In case of doubt/ambiguities against the dull idiot who wrote it and that's the issuing bank!"
"Certificate of quality issued by an independent surveyor at loading
port" does in no way imply that the inspection company must have an
office or P.O. Box in port A!!

It only means that the inspection certificate has to be issued
a) by an independent surveyor (i.e. not by the beneficiary),
b) at loading port.
What is written sounds like if the inspection company didn't carry
out its inspection in port A but that they sat in their office in
Shanghai and relied on what was sent to them as a specimen. This is
clearly not was was intended in the L/C!
As long as there is no quotation in the document that the control
was in fact carried out in port A or better that the document was
issued in port A, I think the issuing bank could consider it a discrepancy.

-Each long journey starts with a small step-

Best regards
Frammi …