CREDIT NOTE

Snjezana · Post by **Snjezana** » Thu Mar 09, 2017 12:00 am

Dear all,
if we receive documents containing invoice and credit note which is referring to some goods from another l/c or completly different job requiring reduced payment fot the amount of that credit note, can we say it is discrepancy that credit note is not referring to goods required by l/c terms.
thanks
regards

asamaha · Post by **asamaha** » Fri Mar 10, 2017 12:00 am

If the documents are otherwise in order, I would consider the credit note as a separate document with separate payment instructions, and not as discrepancy.
Regards
Antoine Samaha

Snjezana · Post by **Snjezana** » Mon Mar 13, 2017 12:00 am

Dear Antoine, thanks for your reply. I suppose that you are saying that credit note should be considered as a document not required by l/c terms and therefore examined under art.14g? Than how can the amount of the invoice be reduced for the amount of the credit note.
best regards
Snježana

GhadaB · Post by **GhadaB** » Mon Mar 13, 2017 12:00 am

I WILL CONSIDER THE CREDIT NOTE AS AN ADDITIONAL DOC WHICH IS TO BE DISREGARDED.
PAYMENT WILL BE EFFECTED IN ACCORDANCE TO L/C TERMS AND CONDITIONS ONLY.
AND BOTH APPLICANT AND THE BENEF. HAVE TO SETTLE THIS ISSUE OUTSIDE THE L/C.

asamaha · Post by **asamaha** » Mon Mar 13, 2017 12:00 am

I mean the credit note (which is an additional document) and the instructions for its payment to the applicant by deducting its amount from presentation amount, are separate from the presentation and should not cause rejection of the documents if they are complying with credit terms.
Regards
Antoine Samaha

Snjezana · Post by **Snjezana** » Mon Mar 13, 2017 12:00 am

still, if any document is separate from the presentation and should be disregarded, how come that the amount of that disregarded document should be taken in consideration when determining the amount due for payment under that particular presentation

asamaha · Post by **asamaha** » Mon Mar 13, 2017 12:00 am

Yes, in my view, this additional document is NOT to be considered as forming part of the presentation and therefore it should be disregarded in the examination process BUT NOT in the settlement process which should follow the nominated bank's instructions.
Regards
Antoine

Snjezana · Post by **Snjezana** » Mon Mar 13, 2017 12:00 am

IMHO, an ivoice could indicate advance or discount but for the goods called by the terms of l/c, otherwise it would make the presentation discrepant. And I would apply the same logic to credit notes.
What would be the necessity of sending credit notes through l/c, obviously influencing and amount due for payment and than at the same time saying that they should be disregarded for examination.
Any other opinion?