TOLERANCE — UNDERSTANDING SUB-ARTICLE 30(c) INTRO Understanding sub-article 30(c) of UCP 600 can be tricky, especially when an LC specifies a fixed quantity and unit price. Many practitioners wonder how the credit amount can be reduced without causing a discrepancy. In this Q&A, Mr. Old Man clarifies the purpose of the 5% tolerance rule and illustrates it with a practical CIF example. QUESTION Dear Mr. … Read More
AN EXAMPLE TO ILLUSTRATE SUB-ARTICLE 30 (C) – TOLERANCE QUESTION Hi, I find it hard to understand Article 30 (c) of UCP 600, which states that: Even when partial shipments are not allowed, a tolerance not to exceed 5% less than the amount of the credit is allowed, provided that the quantity of the goods, if stated in the credit, is shipped in full and a unit price, if … Read More