Uncategorized PENALTY FOR LATE SHIPMENT By Mr Old Man Posted on April 27, 2011 2 min read 3 0 2,628 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM N. Dear Mr. Old Man, Pls help me with the following case. In fact, It’s so complicated that I can’t get my clear idea about this case. Hope for your soonest reply. And thank you very much. LC shows latest shipment date as 25 December and state:“ IF B/L DATE IS LATER THAN THE LATEST SHIPPING DATE, DELAY PENALTY SHOULD BE DEDUCTED FROM GROSS INVOICE VALUE BASED ON 0.1 PCT PER DAY”. BL presented shows shipment date as 1 January. (Shipment is therefore late by 7 days). The invoices submitted show a deduction of the delay penalty amount for 7 days. Since the delay penalty amount has been deducted from the gross invoice amount, should we still quote the discrepancy “LATE SHIPMENT” ? Best regards,N.—————————– ANSWER Hi, It's not easy to say if it is a discrepancy or not. There must be divided opinions. And my view may be debatable: It is not a discrepancy. By stating that delay penalty is to be deducted from the gross invoice… if B/L date is later than the latest shipment date, the issuing bank implies that late shipment is acceptable but subject to delay penalty. The applicant bears the risk of any ambiguity in its instruction to issue or amend a credit. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?