Uncategorized CERTIFICATE OF ORIGIN INDICATING A QUANTITY GREATER THAN THAT STATED IN THE CREDIT By Mr Old Man Posted on September 17, 2013 2 min read 5 0 5,619 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, I have a question regarding C/O presentation. I would greatly appreciate if you could help me to clarify. A credit subject to UCP 600 asked for presentation of “One original and 2 copies of certificate of origin evidencing China origin” for sales of 10,000 MT steel goods from Hong Kong to Dubai. A certificate of origin issued by a Chamber of Commerce in China covering 30,000 MT of steel goods was presented, showing shipment from Hong Kong to Dubai. The issuing bank regarded the certificate of origin discrepant because: Q1 It covers 30,000 MT instead of 10,000 MT of steel goods. Q2 The issuing date of the certificate of origin is two months before the credit issuing date. Is the discrepancy valid ? Many thanks, HL——— ANSWER Hi, Not 100% sure but I think the C/O that indicates a quantity greater than that stated in the LC is acceptable provided that it appears to relate to the invoiced goods by indicating the invoice number and date and that the origin can be identified. According to sub-article 14(i) UCP 600, a document may be dated prior to the issuance date of the LC, but must not be dated later than its date of presentation. Best regards,Mr. Old ManP/s: The answered was revised based on the opinion of Kim Sindberg – Trade Finance Consultant, Sindberg Consult, Denmark and member of ISBP Drafting Group
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?