SIGNATURE ON INSPECTION CERTIFICATE DIFFERS FROM THAT ON PASSPORT

QUERY FROM RSRAGAN – United Arab Emirates

LC calls for and Inspection Certificate and signature of the signing party to be verified by the negotiating bank. The clause goes on like:

Inspection Certificate issued and signed by Mr.xxx holder of xx Passport No certifying that the goods have been inspected and found to be in good order and condition, whose signature appearing on the Inspection Certificate to be verified by a bank in beneficiary's country and in evidence a notation reading "signature verified" and bearing the stamp and signature of the verifying bank must appear thereon.

Documents have been presented to the issuing bank with signature on the inspection certificate verified by the negotiating bank along with copy of the passport of the signing individual (not called for in the LC).

Upon scrutiny by the issuing bank it is observed that the signature that appears on the inspection certificate and the copy of the passport (which was not called for in the LC) included in the presentation are totally different.

What should be the stand of the issuing bank?

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COMMENTS

N.H. Duc – Viet Nam

Hi,

I think the document is acceptable if the signature is verified by the negotiating bank in the manner as required. The copy of passport presented should be disregarded as per Article 14 (g).

What’s more. The L/C does not require that the signature on the inspection certificate must match the signature on the passport.

Best regards,
N.H. Duc

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JSMITH – United Kingdom

I agree with N.H. Duc. As a result I believe that the stance of the issuing bank should be that there is not any reason to refuse honour by reason of the terms of the credit not having been complied with. …