Uncategorized INVOICE NOT ISSUED BY THE BENEFICIARY By Mr Old Man Posted on October 2, 2013 3 min read 10 0 4,669 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man Please kindly advise me of the following case: Our customer asks us to issue an LC (not transferable LC)Documents required: Invoice in triplicateF47A: Third party documents acceptable Question: 1. Whether invoice issued by a named person or entity other than the beneficiary acceptable? (as stated by ISBP 745 Para. A19) 2. Any risks for us if invoice not issued by beneficiary.? Your prompt reply is highly appreciated. Rgds, NMH——- ANSWER Hi, 1. By stating “third party documents acceptable”, the LC allows all documents, except drafts but INCLUDING INVOICES, to be issued by a named person or entity other than the beneficiary. Please compare paragraph 19 (c) ISBP 745 with paragraph 21 (c) ISBP 681 to see that ISBP 681 is clearer than ISBP 745 in respect of the expression “third party documents acceptable”. Paragraph 19 (c) ISBP 745: "third party documents acceptable" – all documents for which the credit or UCP 600 do not indicate an issuer, except drafts, may be issued by a named person or entity other than the beneficiary. Paragraph 21 (c) ISBP 681: "third party documents acceptable" – all documents, excluding drafts but INCLUDING INVOICES, may be issued by a party other than the beneficiary. If it is the intention of the issuing bank that the transport or other documents may show a shipper other than the beneficiary, the clause is not necessary because it is already permitted by sub-article 14(k). 2. I do not see there is any risk in this case. Kind regards,Mr. Old Man P/S: I must admit that I am of the minority who says if LC states “third party documents acceptable”, then according to paragraph A19(c) the invoice can be issued by a named person or entity other than the beneficiary. If ICC had intened that invoices must be always issued by the beneficiary, this should have been included in A19(c) ISBP 745 by adding “… , except drafts AND INVOICES, …” I have referred this case to my fellow editors of Trade Services Update – LC Monitor and the majority agrees that notwithstanding LC stating “third party documents acceptable”, sub-article 18 (a) (i) UCP 600 still applies and the invoice must be issued by the beneficiary.