Same Company Name, Different Address as Notify Party: Does It Create a Discrepancy?

Introduction

Questions frequently arise when the same company name appears in different capacities within a documentary credit transaction — particularly where the address differs.

Does a difference in address automatically create a conflict under UCP 600? Or must such differences be assessed in light of the document’s role and the credit’s requirements?

The following case illustrates this issue.

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Question

Dear Sir,

Thank you for your previous clarification.

I have a further question regarding a letter of credit transaction.

The LC states the beneficiary in Field 59 as:

ABC COMPANY LTD
345 Street, Caleston Street, Fifth Avenue, Nigeria

The Air Waybill shows:

Notify 1:
ABC COMPANY LTD
413 Street, South Street, New Road Avenue, Nigeria

Notify 2:
ALTMAN CO. FZE
North Ave, Lotus Street, 546 Boulevard, Nigeria

Consignee:
BCD BANK
Red Avenue, Garenue Street, Nigeria

The commercial invoice shows:

Beneficiary:
ABC COMPANY LTD
345 Street, Caleston Street, Fifth Avenue, Nigeria

Notify 1:
ABC COMPANY LTD
413 Street, South Street, New Road Avenue, Nigeria

Notify 2:
ALTMAN CO. FZE
North Ave, Lotus Street, 546 Boulevard, Nigeria

Consignee:
BCD BANK
Red Avenue, Garenue Street, Nigeria

The company name of the beneficiary and Notify 1 is the same, but the address differs.

Will this difference in address between the beneficiary and Notify 1 create a discrepancy in the invoice?

Regards,
C.R. Nishanth

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Answer

Dear Nishanth,

The difference in address between the beneficiary and Notify 1 does not, in itself, create a discrepancy.

Under UCP 600 and ISBP 821, a commercial invoice must be issued by the beneficiary named in the credit (UCP 600 Article 18(a); ISBP 821 paragraph C2). In this case, the beneficiary shown on the invoice corresponds exactly to Field 59 of the credit.

Neither UCP 600 nor ISBP 821 requires a notify party to be the beneficiary, unless the credit expressly so stipulates. Likewise, there is no requirement that an address appearing in different capacities (e.g., beneficiary and notify party) must be identical.

Pursuant to UCP 600 Article 14(d), data in documents must not conflict with the credit or with each other. In this case:

• The beneficiary details on the invoice match the credit.
• The Notify 1 details on the invoice match those shown on the Air Waybill.
• The differing address appears in a different capacity (notify party) and does not contradict the identity of the beneficiary.

A difference in address, without contradiction in identity or inconsistency with the credit terms, does not constitute a conflict under Article 14(d).

Accordingly, this would not be a valid discrepancy.

Best regards,
Mr. Old Man