Home Mr Old Man Understanding Quantity Tolerance under UCP 600 Article 30(b): Practical Examples

Understanding Quantity Tolerance under UCP 600 Article 30(b): Practical Examples

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Intro
Questions about quantity tolerance appear frequently in practice, especially when credits state quantities in different ways — by number, by packing units, or by weight and volume. Sub-article 30(b) of UCP 600 is straightforward in principle, but its application becomes clearer when seen through practical examples.

✅ QUESTION

Dear Mr. Old Man,

I’ve found your answer concerning sub-article 30(c) UCP 600 very useful.

I urgently need some detailed examples of the same article but for sub-article (b), namely where the credit does not state the quantity in terms of:

• a stipulated number of packing units; or
• individual items.

Please give some examples (10,000 kg, 100 MT, 100 cars, 120 bales, 100,000 envelopes) and others.

Are these related to countable and uncountable nouns or what?

Thanks,
Pitman

✅ ANSWER

Dear Pitman,

Thank you for your question.

To understand sub-article 30(b), it helps first to distinguish between three ways in which quantity may be expressed in a credit.

1️⃣ Quantity expressed as individual items

Examples:
• 2,000 wristwatches
• 1,500 computers
• 100 cars
• 100,000 envelopes

These are individual items. Each unit is counted separately.

2️⃣ Quantity expressed as packing units

Examples:
• 12,000 boxes
• 1,000 pallets
• 5,000 bales
• 500 barrels

These refer to packing units, even though the contents inside may be bulk goods.

3️⃣ Quantity expressed as bulk or measurable quantities

Examples:
• 10,000 MT of urea fertilizer
• 15,000 gallons of oil
• 5,000 MT of rice
• 25,000 kilograms of sugar

These are quantities measured by weight or volume, not by counting units.

How Article 30(b) applies

Sub-article 30(b) UCP 600 provides that a tolerance of up to 5% more or less than the stipulated quantity is allowed only when:

• the credit does not state the quantity in terms of a stipulated number of individual items or packing units; and
• the drawing does not exceed the credit amount.

Therefore:

• If a credit calls for 100 cars → tolerance under 30(b) does not apply.
• If a credit calls for 5,000 bales of cotton → tolerance under 30(b) does not apply.
• If a credit calls for 10,000 MT of rice → tolerance under 30(b) may apply, subject to the credit amount not being exceeded.

The rationale is practical:

With bulk goods measured by weight or volume, small variations are normal in trade and transport. With counted units or packing units, the expectation is usually exact shipment unless the credit states otherwise.

About countable and uncountable nouns

From a language perspective, individual items are naturally countable, while bulk goods such as oil or grain are typically measured rather than counted.

However, Article 30(b) is based on commercial practice and measurement methods, not grammar. The linguistic distinction may help understanding.

Closing remark

Article 30(b) is a good example of how UCP 600 reflects the realities of trade. Where goods are measured in bulk, tolerance is built into the rules; where goods are counted, precision is expected unless the credit itself provides flexibility.

Best regards,
Mr. Old Man

 

8 Comments

  1. anonymous

    May 31, 2013 at 9:05 am

    NMHOANH writes:Dear Mr. Old Man. Yr explanation is highly valuable and appreciated

    Reply

  2. mroldmanvcb

    May 31, 2013 at 1:05 pm

    Thank you.

    Reply

  3. TRANG

    August 17, 2021 at 9:30 am

    HI MR.OLD MAN, I READ YOUR BLOG EVERYDAY, IT HELPS ME A LOTS, YOU ARE SO ADORABLE
    I HAVE SOME CONFUSION ABOUT UCP 600 ARTICLE 30 (B) AND (C) AND REALLY NEED YOUR EXPLAINATION
    1.CAN YOU EXPLAIN WHEN WE APPLY ARTICLE B OR C
    + ARTICLE (B) REFER TO QUATITY
    + ARTICLE (C) REFER TO CREDIT AMOUNT
    EXAMPLE: A L/C STIPULATE BELOW:
    QUANTITY: 200,000 KGS. UNIT: 2.00USD/KG
    AMOUT: 400,000 USD
    AND DON’T STIPULATE TOLERANCE BOTH QUALITY AND CREDIT AMOUNT, SO WILL I APPLY ARTICLE B OR APPLY ARTICLE C IN THIS QUERY?
    2. ARTICLE (B) CAN YOU GIVE ME A EXAMPLE WHEN QUALITY PLUS 5% TOLERANCE BUT AMOUNT OF THE DRAWINGS STILL NOT EXCEED THE AMOUNT OF THE CREDIT. BECAUSE AMOUT = QUATITY X UNIT
    THANKS YOU SO MUCH

    Reply

    • Mr Old Man

      August 18, 2021 at 5:36 am

      Hi,

      Question 1

      Sub-artivle 30 (b) is applicable to the quantity, hence, goods can be shipped from 190,000 KG to 210,000 KG.

      In your specific case, sub-article 30 (c) is not applicable.

      Question 2

      Sub-artivle 30 (c) is applicable to the following case:

      LC indicates a breakdown of CIF value, e.g., FOB cost USD 120,000, Freight USD 75,000, Insurance USD 5000 = Total CIF USD 200,000. At this time, the freight and insurance are estimated costs.

      The presented invoice shows, e.g., FOB cost USD 120,000, Freight USD 72,000, Insurance USD 4000. At this time, the actual freight and insurance costs are less than the estimated costs.

      The drawing of USD 196,000 is made, which is less than the LC amount.

      Bes regards,
      Mr. Old Man

      Reply

      • Trang

        August 11, 2022 at 4:22 am

        Hi Mr.Old Man, can i ask more at question 1, if goods shipped 210,000 KG so how many money does applicant must to pay according ucp article 30 (b) (the total amount of the drawings does not exceed the amount of the credit. )
        Thanks you so much. I always admire your knowledge

        Reply

  4. Mr Old Man

    August 12, 2022 at 3:40 am

    1/ Invoice may show total amount higher than LC amount but drawing amount must not exceed LC amount. Please also refer to sub-article 18 (b).

    Reply

  5. Faisal Zaheer

    December 6, 2023 at 1:08 pm

    Mr Old Man ,

    For artical 30(b) tolerance +5/-5 to quantity (100 mt oil) unit price 630 per mt Credit amount $63000,
    for e.g invoice present with quantity 104 mt oil total amount not exceed the credit amoutn which is $ 63000
    then unit price per mt will be $605.7692 per mt .

    does invoice has discrepancy ? Pls guide

    Reply

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