Home Mr Old Man INVOICE NOT CERTIFYING WHAT HAS NOT BEEN SHIPPED

INVOICE NOT CERTIFYING WHAT HAS NOT BEEN SHIPPED

2 min read
0
0
71

QUESTION

Dear Sir,

LC allows both AIR and SEA shipment.
Amount: USD 100,000
Shipment by AIR: USD 40,000
Shipment by SEA: USD 60,000

43P: Partial Shipments: ALLOWED
43T: Transshipments: ALLOWED

LC Clause states “INVOICE MUST CERTIFY THAT THE MERCHANDISE ARE IN ACCORDANCE WITH PROFORMA INVOICE NO. XXX DATE XXX FOR USD 40,000.00 AND PROFORMA INVOICE NO. YYY DATED YYY FOR USD 60,000.00”

Now for the air shipment invoice, we will mention below:

“WE HEREBY CERTIFY THAT THE MERCHANDISE IS IN ACCORDANCE WITH PROFORMA INVOICE NO. XXX DATE XXX FOR USD 40,000.00”.

Will it be a discrepancy if the latter part is not mentioned? If not, can you provide the relevant clause from UCP or ISBP solidifying the same.

Regards,

Nishanth

——

ANSWER

Hi,

From a logical standpoint, the invoice which certifies as your suggestion is complying as the LC permits partial shipments. Since the first shipment was sent by air, the air-shipment invoice can only certify the goods corresponding to the proforma invoice amount of $40,000. It cannot certify goods that have not yet been shipped.

My reasoning is based on ISBP 821 C4, which states:

“The description of goods, services, or performance on an invoice is to reflect what has actually been shipped, delivered, or provided.”

Additionally, this matter was referred to TSU editors for their expert opinions, and the majority concurred that there is no discrepancy.

Best regards,

Mr. Old Man

 

  • BENEFICIARY’S ADDRESS IN INVOICE

    Q&A quoted from DCPro Discussion Forum 24 August, 2017 QUESTION Is there any requireme…
Load More Related Articles
Load More By Mr Old Man
Load More In Mr Old Man

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

WHAT IS THE IMPACT OF EXCLUSION OF UCP 600 SUB-ARTICLE 12b?

QUESTION Dear Mr. Old Man, I hope my email finds you doing well I would ask you if the iss…