Damage of goods in transit

[phanikrishna]

HI every one,
i will be thankful in solving this

Credit specifies that partial shipments are not allowed and credit allows tolarance of 10%
Goods are shipped in to the vessel and insurance has been covered for 110% and in the journey goods got damaged which up to 20% that causes to partial shipment, help me in this case what action i should take.....

[danohng]

If the Goods are ship within the tolerance of +/-10% and the transport document showed the goods according to the terms of the credit, there should not be consider as partial shipment even 20% of the goods were damaged during the journey. UCP article 5 expressly stated that bank only deal with document and not the goods, as long as the document complied with the terms and conditions of the letter of credit, issuing bank is obligated to honour.

[somarajuballa]

Dear phani krishna,

As of my knowledge

you should take amendment,otherwise

the document would be descripant,

partial shipments effected.

Regards,
somaraju

[Negotiator]

Dear phanikrishna,

If beneficiary has shipped in full quantity (I'm not sure if "credit allows tolarance of 10%" applies to goods quantity, anyway) and the relevant documents can prove this, it doesn't matter whether the goods were damaged or not after the shipment. The parties to the Doc. credit deal with documents only, therefore they will be no way concerned about the fact. Even if some docs show that 20% of goods were damaged after shipment, it will not be regarded as a partial shipment.

Claiming insurance for that damage will be another issue outside the L/C.

Thanks.
Lee

[danohng]

One more point - if the BL mentioned that 20% of the goods are damaged - then under article 27 of UCP600, the bank should quote a discrepancy on clauses BL instead of partial shipment.

[mia vervacke]

Dear phanikrishna, why do you think it should be a partial shipment?

What is the shipmentterm + which documents does the l/c requires?

Please explain with more details.