Uncategorized TOLERANCE APPLICABLE AGAINST INDIVIDUAL QUANTITIES By Mr Old Man Posted on November 5, 2013 1 min read 4 0 10,667 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION LC stipulates: – Item A: 30 pcs– Item B: 40 pcs– Item C: 1000 pcs Total quantity: 1070 pcs Tolerance more or less 5 percentage in amount and quantity is allowed. Shipment is effected as follows: – Item A: 50 pcs– Item B: 40 pcs– Item C: 980 pcs Total quantity : 1070 pcs The issuing bank raised the discrepancy “Item A is over-shipped”. Is the discrepancy valid? —————- ANSWER Hi, I have ever answered a similar question. The discrepancy is valid. Tolerance of +/- 5% is applicable against individual quantities. So, Item A is over-shipped. By the way, would you accept the following shipment? – Item A: 0 pcs– Item B: 0 pcs– Item C: 1070 pcs The answer is NO. Please also refer to ICC Opinion R688 / TA619. Kind regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?