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MATHEMATICAL CALCULATIONS

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QUESTION

Dear Mr. Old Man,

I must admit that examining documents is a devil of a job. Please help me get to grips with this problem.

Paragraph A22 of ISBP 745 has stipulated as follows:

“When the presented documents indicate mathematical calculations, banks only determine that the stated total in respect of criteria such as amount, quantity, weight or number of packages, does not conflict with the credit or any other stipulated document”

However, if I do a calculation just for carefulness and find out that total value of items detailed in Attachment to Commercial Invoice is different from total value of the goods shipped stated in the face of Invoice, is it a valid discrepancy?

I highly appreciate your answer.

Thank you very much!

Kira

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ANSWER

Hi,

Banks are not obliged to carry out mathematical calculations of individual items, weights or measurements to ensure consistency with other documents. If total value are shown on the document, then it should be in agreement with that shown on other documents presented.

If the attachment in your case shows the total value  which is different from the total value shown on the invoice, then it is a discrepancy. However, if the attachment does not show the total value but value of each item, then you cannot raise the discrepancy that the total value (calculated by you) on the attachment is  different from the total value shown on the invoice.

Kind regards,

Mr. Old Man

 

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2 Comments

  1. KM

    June 24, 2014 at 11:39 pm

    Hi Sir
    Referring to the above situation and also Official Opinion R447 – 2000/01.
    Does it apply for all documentations or only applicable to Packing List?

    For example, Container BL will usually show each individual packages with Weight in each container. If the quantity is huge, the container BL can be as many as 5-6 pages.

    Do we need to check every single items inside this list to ensure that the total weight will tie up with the ‘declared’ total weight?

    Thanks in advance.
    KM

    Reply

    • mroldman

      June 25, 2014 at 4:26 am

      No, Please refer to ISBP para A22, which says:” When the presented DOCUMENTS [including PACKING LIST – emphasized and added by Mr. Old Man] indicate mathematical calculations, banks only determine that the stated total in respect of criteria such as amount, quantity, weight or number of packages, does not conflict with the credit or any other stipulated document”.

      Reply

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