Dear Sir
A buyer is going to issue an LC to us:
Goods description: Cement (10,000MT -/+10%) CIF KARACHI, Pakistan
Apart from Commercial Invoice, packing list and BL, customer has the following terms and conditions in his LC draft:
1. CERTIICATE OF ORIGIN ISSUED OR CERTIFIED BY ANY, COMPETENT AUTHORITY OR CHAMBER OF COMMERCE OR INDEPENDENT INSPECTION AGENCY
2. CERTIFICATE OF QUALITY/ANALYSIS AND CERTIFICATE OF QUANTITY ISSUED BY SGS OR ANY INDEPENDENT INSPECTION AGENCY.
3. CERTIFICATE OF INSURANCE ISSUED BY COMPETENT AUTHORITY
4. ALL DOCUMENTS EXCEPT CERTIFICATE OF INSURANCE, CERTIFICATE OF QUALITY/ANALYSIS, CERTIFICATE OF QUANTITY AND B/L TO BE ISSUED BY THE BENEFICIARY.
5. THIRD PARTY DOCUMENTS ARE ACCEPTABLE
6. MANUFACTURER’S CERTIFICATE IS REQUIRED
7. ALL TYPOGRAPHICAL ERRORS ARE ACCEPTABLE OTHER THAN QUANTITY AND AMOUNT.
Since beneficiary will just issue the commercial invoice and packing list and the BL from the shipping line so it means all other documents will be as follows:
a. Certificate of origin – any competent authority or chamber etc.
b. Inspection certificate by inspection company
c. Insurance certificate issued by insurance company
So my question are:
1. How we can make sure the above three documents are as per LC? Since these are not be issued by us but on the letter head of the respective issuing authorities?
2. Does all these documents need to mention shipper name/beneficiary as Us and applicant name as per LC?
3. How the bank will check each of the above three documents?
4. Does these three documents should mention LC number and other details like description of goods on commercial invoice and packing list?
5. Customer has asked for manufacturers certificate…can we also issue such certificate with the heading of “Manufacturers Certificate”?
6. Since all these three documents will be issued by third parties so as a beneficiary what should we do to make sure once we present these documents to the bank, they are not discrepant?
7. How the bank will interpret, “competent authority” as far as insurance certificate is concerned?
Awaiting your replies…
REGARDS
Muhammad Asim
How COO, Insurance Certi. and Inspection Certf are checked?
-
- Posts: 31
- Joined: Sun Nov 09, 2008 8:58 pm
- berry
- Posts: 329
- Joined: Fri Nov 07, 2008 11:36 pm
content of the document
hi asim,
the LC does not mention the content of the listed document. therefore they comply as presented unless there is specific provision in UCP. i think this answers all the questions.
UCP 600 article 3
the LC does not mention the content of the listed document. therefore they comply as presented unless there is specific provision in UCP. i think this answers all the questions.
UCP 600 article 3
Terms such as "first class", "well known", "qualified", "independent", "official", "competent, or "local" used to describe the issuer of a document allow any issuer except the beneficiary to issue that document.