Article 32?

[KimChristensen]

Dear all,

Need a view or two on a case.

An LC showing partial shipment allowed – and that latest date of shipment is 19.9.2008, also includes the following:

PARTIAL SHIPMENTS MUST BE EFFECTED AS FOLLOWS:

a) ITEMS NO : 8,9,10,12,15,16,18,20,22,23,27,35, 56-62,67,68,72,73,76,87,90,92,93,94,95,96 - IN THREE LOTS BETWEEN THEM SIX MONTHS

b) ITEMS NO:1,2,7,11A,11B,13,14,17,19,21,24-26,28-34,36-38,50-55,63,74,75,77,79,83,84-86 - IN THREE LOTS BETWEEN THEM FOUR MONTHS

c) ITEMS NO:3-6,39-46,48,49,65,71,88,89,97,100,101,102,103,106, 108,109,111,115 - IN TWO LOTS BETWEEN THEM SIX MONTHS

d) ITEMS NO:47,66,112,120,122,123,124 - IN ONE LOT

…

The first shipment effected was “d” – and as it turned out “item 122” was not shipped in full (we were so “lucky” that the full proforma invoice was integrated in the LC showing how many pcs there should be shipped under each item).
This was raised as a discrepancy – and I guess no problem in that (except for the beneficiary of course).

The question is if this LC would be subject to UCP 600 article 32, meaning that the consequence of failing one installment simply means that the LC has “ceased to be available”.

What do you think?

Thanks in advance
Kim

[NigelHolt]

Kim,

Can’t say I’m 100% certain on this.

It seems to me that, whatever the ‘status’ of ‘groups’ A - C*, D is not an instalment drawing or instalment shipment that has to be made within a given period other than the LSD. Therefore I do not see Article 32 as being relevant to D if the first presentation made relates to it.

* I do not understand what is meant by ‘BETWEEN THEM [x] MONTHS’. Perhaps you have not quoted the goods description in full or the Credit explains elsewhere what this means?

Regards, Jeremy

[SteveC]

Hi Christian,

I don't believe Art 32 is applicable as there are no 'given periods'. From the details provided there is no guidance as to which items should be shipped at what time - hence the surprise that 'd' was the first presentation. This is not a true drawing or shipping schedule.

I would agree with your discrepancy on the first drawing but, like Jeremy, am confused by the wording 'between them'. Does this mean that the 3 lots should be over a total time of 4 or 6 months, or that there should be 4 or 6 months between each shipment?

Regards
David

[KimChristensen]

Dear Jeremy and David,

Thank you so much – helpful indeed.

I guess it was also the “between them xx months” that confused me – and in fact still do.

Thanks again
Kim