UCP 600 SUB-ARTICLE 30(C) VS ISBP PARAGRAPH 60

________________________________________
SHEILAR
________________________________________

Dear Nguyen Huu Duc, Abrar,
Greetings!

There is one case (concerning invoice) that I would like to hear your opinion, if convenient:
The LC stipulating:Credit amount: USD100,000
45A: Commodity A
Unit price: USD10/PC FOB XXX;
Quantity: 10,000PCS

The presented invoice showing:
Commodity A
Unit price: USD10/PC FOB XXX
Quantity: 10,000PCS

Question: is it possible for the beneficiary to expressly show a deduction of sample freight (USD100) in this invoice, i.e. the net amount would be USD99,900?
(I think UCP600 art.30c is applicable, as the deduction USD100 is within the 5%; or do you have better eason to support this assumption？)

Thanks and best regards
Sheilar
________________________________________
MR. OLD MAN
________________________________________

Dear Sheilar,

I think it is quite possible as per ISBP para. 60 : An invoice must evidence the value of the goods shipped or services or performance provided. Unit price(s), if any, and currency shown in the invoice must agree with that shown in the credit. The invoice must show any discounts or deductions required in the credit. The invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit.

This case is a bit different from the case in sub-article 30(c). A deduction of more than 5% of the credit amount is acceptable.

Best regards,
Nguyen Huu Duc

________________________________________
ABRAR AHMED
________________________________________

Dear Sheilar

I agree with Nguyen Huu Duc. Applying sub-art. 30 (c) , and assuming partshipments are not allowed; with a fixed unit price and quantity, equating to the LC value, the situation could never arise where the LC could be underdrawn.

However, as per allowance under ISBP para. 60, the deduction could be seen as a form of discount (or "etc"), and theoretically could be up to any amount.

Kind regards

Abrar