Combined invoices & packing lists presented

chungmingchang · Post by **chungmingchang** » Thu Jun 07, 2001 1:00 am

Our credit called for the following:-

1.Invoices in triplicate

2.Packing lists in triplicate

3....etc

Bene submitted 3 invoices combined with PLs i.e. invoice is on the upper half while the lower half is the PL.

Could we take this as discrepant?

larryBacon · Post by **larryBacon** » Thu Jun 07, 2001 1:00 am

If the document specifically stated that it was a combined invoice and packing list, I would be inclined to accept it, but I know of some banks who would not.
My quick look at ICC Opinions does not reveal anything exactly of this type, but Opinion R255 deals with the combination of documents for consignments shipped on two vessels. In this case such combination of documentation was acceptable. This involved combining two invoices into one etc, so it is not exactly the same as the query raised by you.
You can read the full details by accessing "Search ICC Opinions" on this screen.

Laurence A. J. Bacon

PGauntlett · Post by **PGauntlett** » Thu Jun 07, 2001 1:00 am

I think that these days most banks would reject. In oil l/c's you will quite often see a clause stating 'combined documents acceptable'. Without this clause the ben runs a risk of rejection. However it does not take much effort to produce separate invoices and p/lists.

AbdulkaderBazara · Post by **AbdulkaderBazara** » Sun Jun 10, 2001 1:00 am

Agree, however, if the documents were presented on the last day allowed for presentation of documents then it would most likely be difficult to cure the discrepancy and make a timely presentation - specially if other parties need to be involve to certify and / or legalize the documents.

larryBacon · Post by **larryBacon** » Mon Jun 11, 2001 1:00 am

I agree with Mr. Gauntlett's comment regarding the little effort taken to produce separate invoices and packing lists. This is the safest option for the beneficiary and can be easily done on computerised or even carbonated systems by simply replacing the word "Invoice" with "Packing List", taking into account the necessity for originals in each case.

Laurence A. J. Bacon

T.O.Lee · Post by **T.O.Lee** » Tue Jun 12, 2001 1:00 am

Since the LC asks for invoice and packing list separately, these instructions should be followed for safety's sake.

In an invoice, the prices must be stated for obvious reasons. In a packing list, the prices should not be stated.

The reason is that the owner of the goods worries that once the prices are known to the warehouse operators, they may play tricks in the monthly stock taking by making "contra" adjustments by writing off an expensive item and adding an inexpensive item to cover up their planned "switch over" trick. They gain profits by utilising the price difference by delivery of an expensive item instead of an inexpensive item stated in the delivery order.

From the godown risk management point of view, I would not accept a combined invoice/packing list for this reason. It has a material impact on the underlying transaction. It has violated the doctrine of "segregation of duties" as a risk management tool, by letting the godown operators know about the cost of the goods and thereby unintentionally encouraging them to do the "switch over" trick.

I am from www.tolee.com

[edited 2/21/02 9:17:49 PM]