What does it mean by "Packing Units" & "Individual Items" ??

ramisy2k · Post by **ramisy2k** » Sat Feb 20, 2010 12:34 pm

Dear All

An LC has this

Goods description:

"3000MT Sulphur CIF Karachi"

39A: Precentage Credit Amount Tolerance allowed:
Tolerance 1: 10
Tolerance 2: 10

43P: Partial Shipment: Not allowed

Note: The cargo will be shipped in bulk vessel and not in containters. The material has no packing. Its loose. LC has no reference about, packing, containers or bulk vessel. The LC also does not show any indication about tolerance in quantity. The LC also does not state the unit price. It is CIF deal.)

My question is:

1. Can we exceed or decrease quantity by +/- 5%?
2. Article 30 B of UCP says the tolerance of +/- 5% is allowed provided the LC does not state the number of packing units or individual items? What does UCP mean by "packing units" or "individual items"???
4. Is the Metric Ton of "3000MT" in description of goods is the packing unit or individual item?

your kind response is awaited

regards
Asim

jmitra · Post by **jmitra** » Sun Feb 21, 2010 8:38 pm

what is tolerance 1 and tolerance 2. if the tolerance is already set as 10% then 5% rule does not apply. in fact one need not to apply since there is already a greater freedom. i am not sure but are you looking for 10% + 5%?

3000MT is not packing unit. packing unit is something you can count and not measure