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UCP 600 SUB-ARTICLE 14(f)

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QUERY FROM A

Dear Mr. Old Man,

I would highly appreciate your comment on the following case:
L/C required under F 46A: Certificate of quality in 3 originals.
Certificate of quality is presented in 3 originals as required. However, it contains a statement that the quality is not fit for human consumption.
Is it a discrepancy? Can we reject the document based on this statement or just inform the applicant of the fact?
Best regards,

A
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ANSWER

Hi,

Please refer to sub-article 14(f) which reads: “If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfill the function of the required document and otherwise complies with sub-article 14 (d)”.

It is understood from your description that the L/C did not provide any detail as to the wording or specific content that the certificate of quality should give. Therefore, the checking of the said certificate would fall under the support of the above article.

There is no discrepancy.

Best regards,
Mr. Old Man

  • SUB-ARTICLE 14(F)

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9 Comments

  1. anonymous

    January 18, 2012 at 9:01 am

    Anonymous writes:LC requirement in clause 47a no.11 it says (ALL DOCUMENT OTHER THAN INVOICE, TRANSPORT DOCUMENT MUST BEAR THE SAME TITLE STATED IN THE CREDIT BETWEEN BRACKET AND CLEARLY SHOW THE FUNCTION OF THIS DOCUMENT AS PER ARTICLE 14F OF UCP 600. Please explain as all the time my document which sent to bank will be under discrepancy due above clause.

    Reply

  2. anonymous

    January 18, 2012 at 9:01 am

    Anonymous writes:LC requirement in clause 47a no.11 it says (ALL DOCUMENT OTHER THAN INVOICE, TRANSPORT DOCUMENT MUST BEAR THE SAME STATED IN THE CREDIT BETWEEN BRACKET AND CLEARLY SHOW THE FUNCTION OF THIS DOCUMENT AS PER ARTICLE 14F OF UCP 600. Please explain as all the time my document which sent to bank will be under discrepancy due above clause.

    Reply

  3. mroldmanvcb

    January 18, 2012 at 11:01 pm

    The clause in question can be interpreted as follows:If the L/C requires a presentation of a document titled, e.g., "Certificate of Quantity and Quality", then a Certificate of Quantity and Quality must be presented. The title of the document should be between bracket like this (Certificate of Quantity and Quality). The document presented may show its function by indicating the quantity and quality of goods. Check to find out whether your documents are established in the manner as above described.

    Reply

  4. anonymous

    February 17, 2012 at 4:02 am

    Mia writes:I had a discussion about content of certificate of quality. Letter of credit requires: '1 original certificate of quality'.Document presented is titled 'certificate of quality' showing only 'results of analysis' + some chemical indications..Does the content (result of ANALYSIS) fulfill the function of the required document(certificate of QUALITY) or is it enough that the document is titled 'certificate of quality'?.Thanks in advance for your comments

    Reply

  5. mroldmanvcb

    February 17, 2012 at 8:02 pm

    Hi Mia,I answered a question similar to yours in DCPro forum. I quote herebelow for your reference:QUOTEQUESTION POSTED BY GABRIEL (SINGAPORE) ON 16 SEP 2011 AS FOLLOWS:LC requires a certificate of vessel's tank cleanliness. Beneficiary presents a document with exactly the same title, showing content as follow: Quote Method of Cleaning : No tanks cleaning was carried out. UnquoteIs this document complying? Noting sub-article 14(f), the question is whether its content appears to fulfil the function of the required document. Can I have your view please?Regards, GabrielMY ANSWER SAME DAY AS FOLLOWS:This reminds me of the case where the L/C called for a certificate of quality and the presented certificate of quality presented stated that the goods were of poor quality. As the L/C did not provide any detail as to the wording and or specific content that the certificate should give, the presented certificate was acceptable under sub-article 14(f) notwithstanding such a statement.Yours is the same as the above case. There is no discrepancy.Best regards,N.H.DucUNQUOTESome other experts like Jeremy Smith, Glenn Ransier… agreed with me.By the way, in DCPro forum I sign my name as N.H.DUC (i.e., NGUYEN HUU DUC)Regards,Mr. Old Man

    Reply

  6. dom

    May 3, 2016 at 9:38 am

    Hi Mr. Old Man

    LC 45A:
    COMMODITY: “LIGHT OIL”
    “QUANTITY : 40,000 MT +/- 10 PERCENT”

    BL SHOWING : QUANTITY AS 39,000MT
    AND
    ADDITIONAL INFORMATION AS FOLLOWS:
    “LITRES AT 15 DEG C:6697913” AND “KL @ 15C:6,997.913”

    47A: TYPOGRAPHICAL AND SPELLING ERRORS, IF ANY, ARE NOT TO
    BE CONSIDERED AS DISCREPANCIES. THIS EXCLUDES VALUE AND/OR
    VOLUME.

    The B/L showing data of litre and kilolitre was inconsistent with typo error.
    Question 1:
    Do we necessary to ensure the data with different measurement (litre & kilolitre) should be identical.
    Question 2:
    Does typo error condition as per 47a applicable to accept above cases or not acceptable?

    Your comment pls. Thank you

    Reply

    • mroldman

      May 3, 2016 at 6:23 pm

      I do not raise discrepancy in this specific case.

      Reply

      • dom

        May 4, 2016 at 8:17 am

        thank you for the feedback.
        In order to understand more, may i know on what basis in this particular case does not view as discrepancy.

        Appreciate your further comment. Thank you

        Reply

        • mroldman

          May 4, 2016 at 2:29 pm

          I feel hesitation to raise the discrepancy because I think it’s just a tying error. What’s more? It’s just additional information which does not affect to the volume/quantity shipped.

          Reply

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