Uncategorized WHERE A CERTIFICATE OF QUANTITY DOES NOT FULFIL ITS FUNCTION By Mr Old Man Posted on February 10, 2014 2 min read 1 0 2,656 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, LC requires among other documents “Certificate of quality and quantity…” A certificate of quality and quantity presented indicates the invoice number and states that the quality is A grade. However, it contains no information about the quantity of the goods. Is the presented certificate acceptable? Thank you. DD ———— ANSWER Hi, I’m afraid not. Regarding certificates such as certificate of analysis, certificate of inspection, certificate of health, certificate of phytosanitary, certificate of quality, certificate of quantity and other certificates, ISBP paragraph Q1 says: “When a credit requires the presentation of such a certificate, this will be satisfied by the presentation of a signed document titled as called for in the credit, or bearing a similar title or untitled, that fulfils its function by certifying the outcome of the required action, for example, the results of the analysis, inspection, health, phytosanitary, quantity or quality assessment”. In view of the above provision, notwithstanding that it contains the invoice number, the presented certificate of quality and quantity is deemed not to fulfil its function as it does not certify or state the quantity of the goods. 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?