connection between proforma invoice and LC

Ella · Post by **Ella** » Thu Apr 08, 2010 12:02 am

Hi, everybody,

Probably this subject has been discussed already - the relevance of a proforma invoice mentioned in the LC at the "description of the goods". I have an LC with no quantities specified, the amount is limited indeed: 39B Maximum credit amount - Not exceeding ( the amount precised in 32B). But no references to the quantities and to 45A "Descriptions of the goods": "Equipments(their type) and new spare parts, as per proforma invoice no....dated...." How the bank would check our items description in the invoice or packing list, or the quantities if I have only this mention in the LC? This is my question. Are we bound to respect word by word the descriptions in the proforma invoice ( I think we are not compelled to do this, but I wanted to be sure)?
I mention also that the proforma invoice is not integrated in the LC.

Thanks a lot!

Kind regards,
Ella

dileraymarmara · Post by **dileraymarmara** » Thu Apr 08, 2010 2:22 am

According Gary collyer writer of the bookd The guide to documentary credits whic is officia study guide of CDCS exam
a description of goods which
'....according pro inv..... dtd.....' is highly sufficent
and aldo
UCP 14 f says ..... a document which shows fulfill the duty of the called document will be accepted."

but we should be Wre of that in case of the invoice contains addtional desc. of goods it should not conflicts with the rest of the documentation

Rgds

mia vervacke · Post by **mia vervacke** » Thu Apr 08, 2010 3:18 am

You are not bound to respect the description of goods and the provisions in the proforma invoice, if proforma invoice is not an integral part of the l/c.

Case Study 133, Article 43 (UCP 400)

Whether or not a bank has to check the details of a commercial invoice against those of a proforma invoice depends on the circumstances. If the proforma invoice is attached to the credit (which should be discouraged), it forms part of the credit, and must be observed when the documents are examined. If it is not attached to the credit, and the credit states "... goods as per proforma invoice", banks are not required to consider the contents of the proforma invoice in any way. Their responsibility is limited to seeing that any invoice presented makes correct reference to the proforma invoice.