Tolerance issue

[nesarul]

Dear all,
I would like to draw your kind attention on commentary of UCP 600 page no.107
Quote:
"Sub-article (c) draws no distinction between documentary credits that allow or prohibit partial shipments;"

Further reference may also find: page 108:

It is recognized that the rule in sub-article (c) has more applicability when the credit prohibits partial shipment and the emphasis is placed on “Even when partial shipments are not allowed". When a credit permits partial shipment, there is no control over how many shipments a beneficiary may make, and therefore the tolerance referred to in this rule may have minimal effect." [I don't understand how minimal effect takes place. When all shipment completed partially, total effect should be same as full shipment has taken place at one time]

However, if we look keenly into sub article 30(c) of UCP 600:

".......provided that the quantity of the goods, if stated in the credit, is shipped in full [Emphasis added] and a unit price, if stated in the credit",

To me, This sub article is only applicable when partial shipment is prohibited.

How we reconcile the issue?
Regards
Nesar

[shahriar]

interesting point.

".......provided that the quantity of the goods, if stated in the credit, is shipped in full [Emphasis added] and a unit price, if stated in the credit",

i think it also means that if the quantity is not stated in the credit, its need not to be shipped in full

[nesarul]

Dear Shahrier,
What does Starting point of this sub article "Even when partial shipments are not allowed................" means for...
regards
nesar

[shahriar]

Dear sir,

perhaps it may be that i am missing some points, but i really dont think that a partial shipment is related to tolerance. say LC is for 100 USD with unit price 1 and quantity 90. if partials shipment is allowed, beneficiary can ship the goods in several part and may still end up with total drawing 95.

please help me on the issue. am i correct to say that partial shipment is related to quantity while tolerance may be related to both drawing and quantity?

[berry]

can isbp paragraph 80 be related to it?

[kirti]

Dear Shahriar,

I agree with you, "Tolerance" and "Partial" shipment are indeed separate
I guess Tolerance is generally added, when the qty to be shipped cannot be pre-determined until the material is stuffed (like liquid in tanks), however, it can be shipped partially (like 2 + 1 tank)
But Partial shipment is when you are allowed to partially ship the pre-determined qty (like drums) but cannot have tolerance (like if a FCL takes 8- Drums then you cant stuff 79.5 drums)

am i correct?? any comments

[cnaw]

Just some check points to see in LC to apply tolerances
1) Check for Tolerance under field 39a, 39a only applies for amount
2) Check in LC if there is any clause mention Tolerance in field 39a also applies quantities
If LC silent on both above then
3) go to Article 30 a-applies 10/10 for amount, quantity and unit price if the word about and approximately appear
4) 30b-only applies to quantity-5/5 and quantity must be stated in measurement terms such as cubic, liters and etc
5) 30 c-tolerance minus 5 percent in amount-quantity in packing terms and measurement term, unit price must not be reduced,
quantity shipped in full,, partial shipment prohibited(relevant but UCP didnt say must)
.
30 a, b and c can only be used independently..cannot apply more than one at same time.

[21vita]

commentary of UCP 600 ------------------I HAVE NEVER SEE IT BEFORE,WHERE CAN I BUY THE BOOK? IT SEEMS GOOD,,,,,