Hello!
May I have your opinion?
L/C showing goods description as "steel bar" only, and require "Packing list in duplicate showing grade.
Packing list submitted showing goods description as "steel bar SD400". Issuing bank quoted the discrepancy "packing list not showing grade (required by L/C)".
Later, the presenting bank argued that "SD400" is the grade. Since L/C did not state the "grade", it is not discrepancy.
Then, presenting bank argued that packing list did not specify "SD400" as the "grade".
Should issuing bank honour?
LC Requires Packing List To Show Grade But Not Shown In LC
-
wongvv
- Posts: 83
- Joined: Fri Mar 20, 2009 7:50 am
-
uttamchess
- Posts: 17
- Joined: Wed Oct 26, 2011 7:22 pm
- First Name: R Uttam
- Last Name: Sharma
- Organization: IDBI Bank Ltd
- Filter: Two Plus Two =: 4
- Location: India
P/L not showing grade which not found on L/C
Dear Wongvv,
To me I feel the presenting bank is correct.
At the first place, lets admit the LC was not worded correctly. It is always advisable to clearly specify/instruct the requirements explicitly. The LC should have included the exact grade required. By not stating the grade required, the applicant had kept such a risk (ambiguity) open.
I dont find any reason how the issuing bank can refute the presenting bank's claim that SD400 is the grade of the product and that it has been mentioned in the packing list. Just because the word "grade" does not appear in the packing list does not preclude the issuing bank from honoring the presentation.
Best Regards
Uttam
To me I feel the presenting bank is correct.
At the first place, lets admit the LC was not worded correctly. It is always advisable to clearly specify/instruct the requirements explicitly. The LC should have included the exact grade required. By not stating the grade required, the applicant had kept such a risk (ambiguity) open.
I dont find any reason how the issuing bank can refute the presenting bank's claim that SD400 is the grade of the product and that it has been mentioned in the packing list. Just because the word "grade" does not appear in the packing list does not preclude the issuing bank from honoring the presentation.
Best Regards
Uttam