INSTALMENT SHIPMENTS?

QUESTION FROM PHAN THANH NHAN (VIETNAM) – 19 MAR 2012

Hi all,

Pls give us your comment on this case:
F44D of L/C state “shipment period from 15/02/2012 to 15/03/2012” and partial shipment allowed. Does this mean L/C containing an instalment schedule?
And if the first shipment has been effected before 15/02/2012, can we raise the discrepancy “shipment not as per schedule” for the remaining of L/C? (as Article 32: if a drawing or shipment by instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available for that and any subsequent instalment).

Thank you very much.

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ANSWER FROM N.H. DUC (VIETNAM) – 20 MAR 2012

Hi,

Where an LC indicates a shipment schedule by only indicating a number of latest dates or only ONE GIVEN PERIOD, and not GIVEN PERIODS, it is not an installment schedule as envisaged by UCP 600 and Article 32 will not apply. The presentation is to otherwise comply with any instructions in respect of the schedule and UCP 600 Article 31.

The L/C stipulates shipment period from 15/02 to 15/03. So, any shipment made before 15/02 would not comply. As Article 32 will not apply in this case, further shipments made within the stipulated period are acceptable.

Other comments are appreciated.

Best regards,
N.H.Duc

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COMMENT FROM DANIEL D (SWITZERLAND) – 20 MAR 2012

My comment, N.H. Duc is that you're right.

Regards

Daniel
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NOTE: This Q&A is quoted from DCPro Forum.