Tolerance issue
Posted: Wed Oct 28, 2009 6:18 pm
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
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