QUESTION
ELIN writes:
Hi Mr Old Man What if invoice showing one of the merchandise called for under DC but 'FREE OF CHARGE' ? DC requirement : Machine and spare parts for EUR 20,000.00 Invoice showing: Machine – EUR 20,000.00 Spare Parts – FREE OF CHARGE. Is it a discrepancy?
Thanks
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ANSWER
Hi,
It is recognized that shipment of merchandise NOT CALLED FOR in the L/C may delay the entire shipment from clearing customs and preclude the applicant’s ability to receive the merchandise for which the L/C was issued. In accordance with ISBP paragraph 64(b), invoice showing merchandise NOT CALLED FOR in the L/C (even if stated to be free of charge) is not acceptable. However, I would accept the described invoice based on the following reasoning:
1) Spare parts are CALLED FOR in the L/C.
2) L/C does not stipulate the quantity of spare parts. And neither does the invoice.
3) The phrase “FREE OF CHARGE” is just additional information.
Just my own reasoning. Whether or not the invoice is acceptable depends on how each document checker approaches the issue.
Regards,
Mr. Old Man
