Parties

Initiator: Bank A on behalf of the Beneficiary, Company S

Respondent: Bank G

Summary of relevant representations

Issuing bank: Bank G

Applicant: Company C

Advising bank: Bank A

Expiry date: 97-10-09

Latest date of shipments: 97-09-19

Partial shipment: Allowed

Documents required:

- Original and 4 copies of signed commercial invoice

- Original and 3 copies of packing list

- Original and 3 copies of weight list

- Original copy for consignor/shipper of road waybill CMR,

- showing goods consigned to Company B

Additional conditions: Shipping schedule:

At least:

- 40 pct of the goods quantity to be shipped before 31.07.97

- 40 pct of the goods quantity to be shipped before 31.08.97

- Shipment of 100 pct before 19.09.97 is also acceptable

- Shipments: 97-07-17 4.393 pcs corresponding to 40,38 pct of goods quantity

- 4,319 pcs corresponding to 39,70 pct of the goods quantity

- 2,176 pcs corresponding to 20 pct of the goods quantity

The issuing bank accepted the documents for the first shipment.

The issuing bank, claiming the following discrepancies, rejected the documents for the second shipment:

2:1 CMR mentions in field 2 both Company C and in the additional text "Goods consigned to Company B";

2:2 Shipping schedule not respected; 40 pct of goods quantity not shipped before 31.08.97;

2:3 Net and gross weight of invoice for 2285/F and corresponding packing list differ;

2:4 Field 23 of CMR: stamp of carrier missing.

The issuing bank, claiming the following discrepancies, rejected the documents for the third shipment:

3:1 Shipment schedule not respected;

3:2 Weight list contains no description of the goods;

Group of Experts' decisions

Shipment two

2:1 Field 2 of the CMR shows the applicant Company C as the consignee. By adding another consignee, Company B, in the field for additional text the documents become contradictory. The contradiction is a discrepancy.

2:2 The shipment schedule does not demand that at least 40 pct of the goods quantity shall be shipped after 97-07-31 but before 97-08-31. The shipment schedule is respected. (It is noted that the percentages in relation to three shipments are in fact as follows: 40,35%, 39,67% and 19,98%, as opposed to the figure set out in the summary of the relevant representation. However, this has no effect on our decision: at least 80% was shipped before 97-08-31.)

2:3 Article 13 of the ICC "Uniform Customs and Practice for Documentary Credits",

1993 Revision (UCP 500) sets the standard for examination of documents. Sub-Article 13(a) states that:

Banks shall use reasonable care, to ascertain whether or not the documents appear, on their face, to be in compliance with the terms and conditions of the Credit ... ;

Compliance shall be determined by international standard banking practice as reflected in these Articles;

Documents which appear on their face to be inconsistent with one another will be considered as not appearing on their face to be in compliance with the terms and conditions of the Credit.

Furthermore, the packing list is a document under Article 21, and if the credit does not specify the content, the banks shall accept such document as presented provided that the data content is not inconsistent with any other stipulated document presented.

The credit does not ask for a total of net and gross weight shown in the invoice to be 337,50 and 419,50 kg. The packing list shows the total net and gross weight per destination for different boxes included in the invoice for 2285/F, but does not show any total for the net and gross weight included in the packing list.

The contents of the packing list do not on their face show any inconsistency when compared with the other documents.

The Group of Experts finds the packing list on its face to be in compliance with the terms and conditions of the credit.

2:4 In field 23 of the CMR "Company V as carrier" is typed. The signing of the document is in full compliance with UCP 500 Article 28, which does not require a stamp in addition to being signed or otherwise authenticated by the carrier. No discrepancy.

Shipment three

3:1 The shipment schedule does not specify any minimum quantity to be shipped after 97-08-31 but before 97-09-19. The beneficiary is indeed allowed to ship until and including the latest date for shipment shown in the credit, i.e., 97-09-19. Further, 80% of the goods had been shipped by 97-08-31, and the shipment schedule has been respected for shipments one and two, whereby the terms and conditions of Article 41 of UCP 500 are also respected. The shipment schedule is respected.

3:2 The weight list is a document under Article 21. The credit does not specify the content of the weight list, and therefore the issuing bank has to accept the document as presented, provided that the data content is not inconsistent with any other stipulated document presented. The weight list contains all necessary data in order to connect it to the other documents presented.

The issuing bank has in its correspondence referred to Article 37. This Article is about the commercial invoice, and sub-Article 37(c) mentions that "In all other documents, the goods may be described in general terms not inconsistent with the description of the goods in the Credit." Article 37 does not imply that all other documents shall contain a goods description. No discrepancy.