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

___

Further comment from an expert:

Tricky point here that it is not always clear from the title of the required certificate what it’s function should be. If for instance a credit asks for a “certificate of analysis”, without further specifying it’s content, would a “certificate of inspection” be discrepant?

Mr. Old Man’s Answer

Thank you for raising this related issue.

ISBP 821 paragraph 15 addresses certificates of analysis, inspection, health, phytosanitary, quantity and quality within the same category of documents.

ISBP 821 Q1 allows the presented certificate to be titled as called for in the credit, bear a similar title, or be untitled, provided that it fulfils its function by certifying the outcome of the required action, such as the results of analysis, inspection, health, phytosanitary, quantity or quality assessment.

Accordingly, if the credit requires a “Certificate of Analysis” without further specifying its content, a “Certificate of Inspection” is not automatically discrepant merely because it bears a different title.

However, the Certificate of Inspection must fulfil the function of the certificate required by the credit. In other words, it should certify the outcome of the analysis, including the results of the analysis or what is commonly recognized as the result of the analysis.

If the Certificate of Inspection does not certify the required outcome of the analysis, it would not fulfil the function required by the credit and would therefore be discrepant.

The same principle applies irrespective of which of these certificates is required: the title is relevant, but the decisive consideration is whether the presented certificate fulfils the function required by the credit.