Commercial Invoice Showing Notify Parties and Consignee: Discrepancy or Not?

Introduction

In practice, disputes often arise when applicants request additional details to be inserted in the commercial invoice — even though the credit itself does not expressly require such information.

The following question concerns whether the inclusion of notify parties and consignee details in a commercial invoice may create a discrepancy, and whether a special clause relating to the beneficiary affects honour.

Question

Dear Sir,

Good day to you.

I have one LC which shows a beneficiary in Field 59.

The AWB shows:

• Two notify parties (Notify 1 and Notify 2), and
• A consignee, being a bank with full address.

The invoice clause in the LC requires:
“Commercial Invoice in 1 original and 2 copies” and does not state any special requirement regarding notify party or consignee.

The customer is requesting that the commercial invoice mention:

• Notify 1
• Notify 2
• Full consignee details (the bank)

Additionally, the LC contains a clause stating that if the invoice shows a beneficiary different from that stated in Field 59, payment will not be honoured.

1️. Will mentioning Notify 1, Notify 2, consignee and beneficiary (as per Field 59) make the document discrepant? If not, which ISBP provision supports this?

2️. Will payment be honoured in light of the special clause?

Regards,

Nishanth

________

Answer

Dear Nishanth,

Thank you for your questions.

1️. Invoice showing notify parties and consignee

Under UCP 600 Article 18(a), a commercial invoice must be issued by the beneficiary named in the credit.

ISBP 821 paragraph C2 further clarifies that the invoice must appear to have been issued by the beneficiary (or, in the case of a transferred credit, the second beneficiary).

However, neither UCP 600 nor ISBP requires a commercial invoice to state notify party or consignee details unless the credit specifically calls for such information.

If the beneficiary chooses to include:

• Notify 1
• Notify 2
• Consignee (the bank)

this constitutes additional information.

In accordance with UCP 600 Article 14(d) and ISBP 821 paragraph C5, data in a document need not be identical to the credit, but must not conflict with:

• The terms and conditions of the credit, or
• Data in other stipulated documents.

Therefore, inclusion of notify party and consignee details in the invoice does not create a discrepancy, provided that such information does not conflict with the credit or other documents.

2️. Invoice showing a beneficiary different from Field 59

ISBP 821 paragraph C2 makes it clear that the invoice must be issued by the beneficiary named in the credit.

If the invoice shows a different beneficiary, this constitutes a valid discrepancy.

The issuing bank would be entitled to refuse the presentation, even if the credit did not contain the specific non-honour clause mentioned in your question.

The special clause in the LC merely reinforces what is already required under UCP 600 and ISBP 821. It does not introduce a new rule.

Conclusion

• The inclusion of notify party and consignee details in a commercial invoice does not create a discrepancy unless it conflicts with the credit or other documents.
• An invoice issued by a party other than the beneficiary named in Field 59 constitutes a valid discrepancy, irrespective of any special clause.

I hope this clarifies the matter.

Best regards,

Mr. Old Man