QUESTION
Dear Mr. Old Man,
I have a case regarding invoice as follows:
LC stated that:
SIGNED AND STAMPED COMMERCIAL INVOICE ISSUED BY THE BENEFICIARY IN THE NAME OF APPLICANT CERTIFYING THAT GOODS INVOICED STRICTLY COMPLY WITH THOSE MENTIONED IN THE ABOVE PROFORMA INVOICE IN 3 ORIGINALS AND 3 COPIES.
Invoice presented by the beneficiary showing:
“In the name of applicant CERTIFYING THAT GOODS INVOICED STRICTLY COMPLY WITH THOSE MENTIONED IN THE ABOVE PROFORMA INVOICE”
I raised a discrepancy as follows:
Invoice:
+ Applicant not certifying that goods invoices strictly comply with those mentioned in the above proforma Invoice”
+ Not signed by Applicant.
Please tell me whether I am correct in raising such a discrepancy.
Looking forward to receiving your soon reply
Thanks a lot
NGLC
—————-
ANSWER
Hi,
According to sub-article 18 (a) UCP 600, a commercial invoice must appear to have issued by the beneficiary and must be made out in the name of the applicant.
The requirement in the LC is based on the above provision of UCP 600. Perhaps, the misssing of the word “AND” has caused confusion and misunderstanding for some non-native English speakers. It will be clearer if the requirement is re-worded as follows:
“Signed and stamped commercial invoice issued by the beneficiary AND in the name of the applicant certifying that the goods invoiced strictly comply with those mentioned in the above proforma invoice …”
In short, the invoice is acceptable if it includes the name of the applicant.
Kind regards,
Mr. Old Man
An Pham
November 2, 2016 at 3:26 pm
Dear Mr Old Man,
I have a case like the following:
Invoice shows
– Seller/Shipper: Company A (who is the beneficiary)
– Consignee: To the order of Bank B
– Notify: Company C (who is the applicant)
The issuing bank raises discrepancy “invoice not made out in the name of applicant”
Could you please tell me whether this discrepancy is correct or not?
Thank you very much
An Pham
mroldman
November 2, 2016 at 5:24 pm
Hi,
According to sub-article 18 (a)(ii), an invoice must be made out in the name of the applicant. The invoice in question does not indicate the applicant, so it is discrepant.
An Pham
November 2, 2016 at 8:29 pm
Thank you Mr Old Man
Thanh thanh
November 5, 2016 at 7:10 pm
Dear Mr Old Man,
May i have your example of ucp 18a, ii: “invoice made out in the name of applicant”.
My thinking of this phrase is that The applicant’s name showed anywhere on invoice is complied. So, i don’t understand why the above case of “An Pham” is discrepant, clearly her invoice shows NOTIFY: COMPANY C (applicant).
.
I am also facing to the similar case:
beneficiary: abc, applicant: xyz,
Field 47: invoice must mention notify party: xyz-ha noi branch.
And i receive an invoice showing:
Ben: abc ( signed and signature)
Notify party: xyz- ha noi branch.
.
Dear Mr Old Man, i see that invoice does not show the name of applicant: xyz, so i will raise the discrepancy according to 18aii- not made out of applicant.
Please kindly help me to clarify two above cases. Thank you so much for your kind help and have a nice weekend!