Uncategorized DESCRIPTION OF GOODS IN INVOICE By Mr Old Man Posted on September 23, 2010 6 min read 15 0 4,724 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr ________________________________________From: Ayman Mesaowa []Sent: Thu 9/23/2010 2:33 AMTo: Nguyen Huu Duc (DNG)Subject: certificate and declaration under ispb no.8 &13 Dear Mr. OLD MAN, know you a long time from my search on the internet about subjects about lcs, I really admire to your large knowledge of trade finance field and lcs i want to get your value opinion about two cases which faces me as i check documents. 1) if invoice shows more discreption of goods which exceeds than showed in lc under field 45a. . can it be considered as more details and as well as the discreption requierd in the lc showed in the invoice . it `s not consider discrepancy . 2) in case a certificate or decrlation required, it must be dated and signed or not . I’am looking forward to receiving your appreciated reply . Best regards,ayman ibrahim mesaowatrade finance officer NBE ________________________________________From: Nguyen Huu Duc (DNG)Sent: Thu 9/23/2010 9:13 AMTo: Ayman MesaowaSubject: RE: certificate and declaration under ispb no.8 &13 Dear Ayman Mesowa, 1) The description of the goods, services or performance in the invoice must correspond with the description in the credit. There is no requirement for a mirror image. For example, details of the goods may be stated in a number of areas within the invoice which, when collated together, represent a description of the goods corresponding to that in the credit. It’s not easy to give a correct answer for all cases without seeing the documents. I wish to give you two examples: Example 1: (based on ICC Opinion R584/TA564rev). – Description of goods in LC: Men's suede jackets, plain suede fabric" – The invoice presented: Men's suede jackets (imitation suede with 100 per cent polyester knitted backing) plain suede fabric” It is a discrepancy. The addition of the words "(imitation suede with 100 per cent polyester knitted backing)" is not part of the description of the goods in the credit. The word "imitation" indicates a different category or classification of the goods, which is not apparent in the goods description within the credit. The addition of the word "imitation" is grounds for refusal on the basis that the goods description in the invoice does not correspond with that in the credit. Example 2: – Description of goods in LC: 500 packages of frozen seafoods – Trade term: CIF Hong Kong port”Total amount: USD10,000.- – The invoice presented: Frozen seafoods Details as follows: It is NOT a discrepancy. 2) It is understood from the below guiding provisions of ISBP that a SEPARATE certificate and declaration must be dated and signed, and that the one that appears in another document which is signed and dated need not be signed or dated. ISBP para. 8: “A certification, declaration or the like may either be a separate document or contained within another document as required by the credit. If the certification or declaration appears in another document which is signed and dated, any certification or declaration appearing on that document does not require a separate signature or date if the certification or declaration appears to have been given by the same entity that issued and signed the document.” ISBP para. 13: “Although it is expected that a required certificate or declaration in a separate document be dated, its compliance will depend on the type of certification or declaration that has been requested, its required wording and the wording that appears within it. Whether other documents require dating will depend on the nature and content of the document in question.” ISBP para. 37: “Even if not stated in the credit, drafts, certificates and declarations by their nature require a signature.” 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?