invoice containing 'free of charge' goods

YaffiD · Post by **YaffiD** » Fri May 04, 2012 1:00 am

I seek for your opinion as to the below matter: we issued an LC with descreption of goods: "furniture" .
we were presented with an invoice indicating "furniture" with its value in usd and "furniture" with indication "free of charge".art. 64b of ISBP says" invoice must not show: merchandise not called for in the credit....even if stated to be free of charge.

In our case the merchandise is called for in the credit (furniture) so I am not sure the article is relevant.

Would you consider the invoice to be discrepant?

NigelHolt · Post by **NigelHolt** » Fri May 04, 2012 1:00 am

I have never been persuaded of the merits in principle of para 64(b) and certainly believe its application can often be problematic in practice, as your example ‘nicely’ illustrates.

The question to me is 'How do you decide there are goods not called for in the credit?' and 'Does the fact that goods are free of charge of itself constitute prima facie evidence that they are not called for?'.

I this particular case I incline -with some hesitation- to the view that given the credit goods description and the description of the free of charge goods there is not prima facie evidence that the invoice shows goods not called for in the credit. (In other words I do not believe the fact that goods are described as being FOC constitutes prima facie evidence of them not being called for in the credit.) Suffice it to say, given the tentative nature of my views, I would not be surprised to be proved wrong.

DanielD · Post by **DanielD** » Fri May 04, 2012 1:00 am

Jeremy,

It is not for showing off not being a lawyer, but could it be possible that the origin of this matter is the legal case "The Julia" where it was stated that the seller hands the documents called for in the contract covering the goods covered in the contract and not others?
Regards
Daniel

NigelHolt · Post by **NigelHolt** » Fri May 04, 2012 1:00 am

Daniel,

You are better informed than me; this is the first time I have heard of 'The Julia'. Having looked at http://pntodd.users.netlink.co.uk/cases ... /julia.htm I cannot see it is obviously relevant.

Best regards, Jeremy

YaffiD · Post by **YaffiD** » Mon May 07, 2012 1:00 am

I would like to emphasize that "goods not called for in the credit" means something different than the goods described in 45a. In our credit ,same goods indicated- part with value and part "free of charge". Do you consider invoice complies to the credit?

DanielD · Post by **DanielD** » Mon May 07, 2012 1:00 am

I am not sure it means different goods. It could mean same or different goods. If you ship samples as in par.64 b, it could be samples of different goods or samples of the goods required in the credit.
Daniel

YaffiD · Post by **YaffiD** » Tue May 08, 2012 1:00 am

The main question (regardless of the art. in ISBP) is whether invoice may show description of goods without value.

DanielD · Post by **DanielD** » Wed May 09, 2012 1:00 am

Regardless of the ISBP, see query TA 562rev. Query 3
Daniel

YaffiD · Post by **YaffiD** » Thu May 10, 2012 1:00 am

Thanks Daniel.
I cannot finf TA562. what is it about?

SergeyK · Post by **SergeyK** » Fri May 11, 2012 1:00 am

Please try: "TA562rev" in "Site Search" area located in upper left corner of the page.

Sergey