CDCS Question On Article 32 of UCP600

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
User avatar
gegeeee
Posts: 147
Joined: Fri Jul 05, 2013 5:50 pm
First Name: Gega CITF, CDCS
Last Name: Topadze
Organization: Bank of Georgia
Filter: Two Plus Two =: 4
Location: Tbilisi, Georgia

CDCS Question On Article 32 of UCP600

Post by gegeeee » Mon Aug 29, 2016 10:10 pm

Hi colleagues,

Need your opinion regarding below mentioned question:
A credit allowing partial shipments states following shipment schedule:
5000 units to be shipped between 01-15 January 2012
2000 units to be shipped between 16-31 January 2012
3000 units to be shipped between 01-15 February 2012
5000 units to be shipped between 16-29 February 2012
Which of the following shipment(s) under the credit is (are) complying?
I. 5000 units shipped on 13th January 2012
II. 1000 units shipped on 25th January 2012
III. 4000 units shipped on 15th February 2012
IV. 5000 units shipped on 19th February 2012
A. (I) only B. Both (I) and (II) C. (I), (II) and (III) D. All of the above

Thank u in advance
Gega

User avatar
gegeeee
Posts: 147
Joined: Fri Jul 05, 2013 5:50 pm
First Name: Gega CITF, CDCS
Last Name: Topadze
Organization: Bank of Georgia
Filter: Two Plus Two =: 4
Location: Tbilisi, Georgia

my opinion

Post by gegeeee » Mon Aug 29, 2016 10:18 pm

My answer is B. Both (I) and (II).

Answer I. is definitely correct.

Regarding Answer II. I think it is also correct as partial shipment is allowed i.e. partial shipment in each instalment is available.

Regarding Answer III. It is incorrect and accordingly as per article 32 the credit ceases to be available for that
and any subsequent instalment.
Please share your opinions.

Gega

User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Shipment Period

Post by picant » Mon Aug 29, 2016 10:54 pm

Hi Pal,

the schedule being not respected by third shipment, the l/c has been no more valid.
Ciao.

quang
Posts: 30
Joined: Sun Aug 21, 2016 8:37 pm
First Name: minh
Last Name: nguyen
Organization: HSBC bank
Filter: Two Plus Two =: 4
Location: Hochiminh

Post by quang » Thu Sep 08, 2016 6:50 am

i choose C. (I), (II) and (III), short shipment for 2nd shipment and LC cease to be available for that and subsequent shipment according to art 32

dodo
Posts: 27
Joined: Thu Sep 15, 2016 8:42 pm
First Name: thanh
Last Name: thanh
Organization: dt co.,ltd
Filter: Two Plus Two =: 4
Location: VN

Post by dodo » Fri Sep 16, 2016 6:20 pm

dear ms/sir,
in my opinion, the answer should be B (both I and II).
I is complying because it is shipped as the first shipment schedule
II is also complying because it is shipped as the second shipment schedule and l/c allows partial shipment.
But there is no more 1000 unit under the second shipment schedule, that make all latter shipments are ceased according to art 32 ucp 600

User avatar
shafi865
Posts: 49
Joined: Thu Feb 23, 2017 11:26 pm
First Name: S. M. Shafiqur
Last Name: Rahman, CDCS
Organization: Southeast Bank Ltd.
Filter: Two Plus Two =: 4
Location: Bangladesh

Post by shafi865 » Fri Mar 31, 2017 4:57 pm

gegeeee wrote:Hi colleagues,

Need your opinion regarding below mentioned question:
A credit allowing partial shipments states following shipment schedule:
5000 units to be shipped between 01-15 January 2012
2000 units to be shipped between 16-31 January 2012
3000 units to be shipped between 01-15 February 2012
5000 units to be shipped between 16-29 February 2012
Which of the following shipment(s) under the credit is (are) complying?
I. 5000 units shipped on 13th January 2012
II. 1000 units shipped on 25th January 2012
III. 4000 units shipped on 15th February 2012
IV. 5000 units shipped on 19th February 2012
A. (I) only B. Both (I) and (II) C. (I), (II) and (III) D. All of the above

Thank u in advance
Gega
I am going for B. Both (I) and (II)

Post Reply