QUESTION
Dear Mr. Old Man,
I have the following case:
The beneficiary presented the documents including invoice to our bank for negotiation.
In addition to the goods required in the LC, the invoice also indicates additional goods and unit price with a note “no commercial values”, and the total invoice amount does not include the value of these additional goods.
The documents were forwarded to the issuing bank which cited the discrepancy “invoice indicating goods not called for in the LC”.
We rejected the discrepancy based on ISBP 745 paragraph C7, which says “an invoice may indicate a deduction covering advance payment, discount, etc., that is not stated in the LC”.
Please tell us whether the issuing bank or our bank is correct?
Thank you.
PTM
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ANSWER
Hi,
Sorry but I must say the issuing bank is correct in citing such a discrepancy.
According to ISBP 821 paragraph C13 (b), an invoice is not to indicate goods, services or performance not called for in the LC. This applies even when the invoice includes additional quantities of goods, services or performance as required by the LC or samples and advertising material and are stated to be free of charge.
ISBP 745 paragraph C7 has nothing to do with this situation.
Kind regards,
Mr. Old Man
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