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DESCRIPTION OF GOODS ON INVOICE

By Mr Old Man
Posted on October 1, 2015
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QUESTION

Dear Mr. Old Man,

I would like to as your opinion on the following case:

– Field 45A of a LC requires description of goods as follows:

+ Commodity: Fabrics

. Contract number A, amount: USD50,000.00

. Contract number B, amount: USD25,000.00

– The documents presented including an invoice as follows:

+ Commodity: Fabrics

+ Contract number A, B.

+ Amount: USD45,000.00

Can I raise the discrepancy: Invoice not showing the amount shipped of each contract as LC required?

Yours sincerely.

HC

——————–

ANSWER

Hi,

According to UCP 600 sub-article 18 (c), the description of goods shown on the invoice is to correspond with the description shown in the LC. Paragraph C4 ISBP 745 says that the description of goods is to reflect what has actually been shipped, delivered or provided.

The invoice in question is to be specific with regard to the value of goods shipped under each contract.

You can raise such a discrepancy.

Kind regards,

Mr. Old Man

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3 Comments

3 Comments

  1. Tan

    July 18, 2016 at 11:03 am

    HI

    As stated in ISBP, invoice can show additional information about the goods which do not appear to refer to a different nature, classification, category…Can you help:
    + The mark ‘,’ is understood ‘and’ or ‘or’
    + Give clear explanation ‘ a different nature, classification, category’ of goods. I myself sometimes feels emotional when defining a different nature, classification, category.

    fx: 1. ISBP gives example which is not different nature, classification, category. . LC: SUE SHOES, INVOICE: IMITATION SUE SHOES. In my view, imitation sue shoes is classified one kind of shoes
    2. LC: steel, invoice: stainless steel. is it acceptable

    Thanks and best regards

    Tan

    Reply

    • mroldman

      July 20, 2016 at 11:18 am

      Hi,

      1. It depends on the context that the mark “comma” is understood as “and” or “or”. Where the context is not apparent, it can be understood as “and” or “or”. See ISBP A2 (b), which says “The use of a comma when indicating a range of data in a credit such as ports of loading or discharge or countries of origin, may result in different meanings and should not be used as a substitute for a word. If, nevertheless, a comma is used and no context is apparent, this will allow the use of one or more of the options. For example, when a credit allows partial shipment and indicates the port of loading information as “Hamburg, Rotterdam, Antwerp” with no further clarification, this will mean only Hamburg or only Rotterdam or only Antwerp or any combination of them”.

      2. It also depends on the context that goods are of different nature, classification or catergory. Sometimes they are used interchangeably.
      Sue shoes is different from Imitation Sue shoes due to different nature, like original goods and counterfeit goods.
      Iphone 6 is different from Iphone 7 due to different category or nature.
      Brand new Iphone is different from second hand (used) Iphone.
      2. Agreed.

      Kind regards,
      Mr. Old Man

      Reply

    • Tan

      July 21, 2016 at 9:30 am

      Thanks for your support

      Reply

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