LINKAGE

QUERY FROM JED
Document not indicating any reference

Dear all friends,

May I have your clear clarification about "LINKAGE" between documents presented under L/C subject to UCP 600.
Query)

L/C required presentation of Packing List. Beneficiary presented Packing List in which all data are not conflict with data in that document, any other documents presented or the L/C. However, the Packing List does not indicate any reference number, thus banks unable to identify that documents is linked with the same shipment/presentation.

We determined this as a discrepancy in accordance with sub-article 13(a) of UCP 500, "Documents which appear on their face to be inconsistent with one another will be considered as not appearing on their face to be in compliance with the terms and conditions of the Credit … ". Also ICC DOCDEX Decision No. 218 made similar decision.

However, UCP 600 deleted this provision and relaced it with sub-article 14(d) "Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit."

Is a document (like, Invoice, Packing List, Inspection Certificate or Shipping Company Cerificate) not indicating any reference (such as, L/C No. or other reference No. of other documents presented) discrepancy under UCP 600, even if there is no other discrepancy (ie. No conflicting data) in that document?

Thanks.

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COMMENT FROM Mr. Old Man

Linkage

Dear Jed,

UCP 600 contains no detailed articles covering packing list, certificate of inspection, certificate of quality or even C/O … i.e., documents other than transport document, insurance document or commercial invoice. However, based on sub-article 14 (d) and (f), banks will accept such documents as presented provided their information content enables the goods and/or services rendered to in the documents to be related to those referred to in the invoice or the LC.

As mentioned, the content/data of the packing list do(es) not conflict with those in the packing list itself and other stipulated documents of the LC, i.e., its content appears to fulfil the function of the required document and otherwise complies with sub-article 14 (d), therefore, the said packing list is not discrepant.

Commercial invoice is governed by UCP 600 Article 18.

What’s more. Linkage was one of the subjects ever discussed by UCP Drafting Group but eventually national committees voted not to incorporate it in UCP 600.

I’m looking forward to hearing more comments from other specialists..

Best regards,
Nguyen Huu Duc …