Page 1 of 1
Description of goods.
Posted: Tue Oct 13, 2009 2:20 pm
by Rejaul17
Hi Everybody
I appreciate your opinion regarding the following case:
Description of goods in field 45A: INDIAN RAPE SEED MEAL WITH THE FOLLOWING DETAILS:
A) OILS AND ALBUMINOIDS COMBINED : 36 PERCENT TO 38 PERCENT BELOW 36 % REJECTABLE
AT BUYERS OPTION.
B) FIBRE : 12 PERCENT TO 14 PERCENT ABOVE 14 PERCENT
REJECTABLE.
etc.......
Commercial invoice shows descripency of goods as :
"INDIAN RAPESEED MEAL."
The issuing bank has noticed descripency as per article 18c of UCP 600.
Regards
Rejaul.
descrption of goods
Posted: Tue Oct 13, 2009 7:26 pm
by picant
Hi Pal,
it is very difficult to "translate" contract terms in L/C wording.
A correct L/C had to indicate in goods description. Indian rape seed meal. Than ask for a quality certificate stating the percentage of A)Oils and Albuminoids from 36 to 38% and B)fibre from 12 to 14 %.
In your case,probably, the issuing bank consider goods description not in contrast .
Other comments appreciated
Ciao
My view
Posted: Tue Oct 13, 2009 8:38 pm
by cristiand969
At a first glance issuing bank seems to have introduced in description of goods terms and condition from the contract that created confusion as to the integrity of the credit.
Rejaul17 wrote:BELOW 36 % REJECTABLE
AT BUYERS OPTION.
(docs may or may not be accepted - in terms of credit a possible waiver for a discutable discrepancy beyond issuing bank understanding )and
Rejaul17 wrote:ABOVE 14 PERCENT
REJECTABLE.
( discrepancy not to be waived in case of buyer's acceptance????)
.
Now how a beneficiary can write in his invoice those stupid remarks about 'rejectable' in case issuing bank claims description not corresponding.
.
In the context of such description the beneficiary should have at least stated the percentage of goods triggering the payment. (i.e. for example 37,5 pct oil and albuminos and fibre between 12 to 14 pct)
good observation
Posted: Wed Oct 14, 2009 11:05 pm
by iLC
good observation dear cristain. im in line with your thought. i have seen a lots of proforma invoice with similar language. these lines appears to be a condition but if written correctly would form a part of the description of goods. the beneficiary should include the details. however i would not have reject the presentation for not mentioning this.
document discrepant
Posted: Wed Oct 14, 2009 11:09 pm
by ORUNMILA
hi all
the decription stated on the commmercial invoice is too general. description of goods on comercial invoice ought to be detail.
other views welcome
My opinion
Posted: Thu Oct 15, 2009 8:10 am
by Rejaul17
If the description of goods in the commercial invoice were like the following:
Indian rapseed meal
A) OILS AND ALBUMINOIDS COMBINED : 36 PERCENT.
B) FIBRE : 13 PERCENT.
etc.....
then it would not be logical to quote
BELOW 36 % REJECTABLE
AT BUYERS OPTION. and
B) ABOVE 14 PERCENT
REJECTABLE.
in that case the description should be OK. Yes I agree with cristiand969.
Other comments appreciated.