Our credit called for all docs to incorporate
our credit number LC123456.
The Packing list indicated the credit number as
123456 while the rest of the docs showed the correct
& full credit reference LC123456.
Would this amount to a discrepancy?
Common sense, which Mr TO Lee likes to emphasise, would
would tell us that it would not affect the underlying
transaction. But could our applicant subsequently accuse
us of being negligent?
Thank you.
Partial omission of credit number
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gracehwang
- Posts: 6
- Joined: Fri Apr 05, 2019 5:19 pm
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AbdulkaderBazara
- Posts: 256
- Joined: Fri Apr 05, 2019 5:15 pm
Partial omission of credit number
I would tend to totally agree with Mr. Lee. This is not a material discrepancy and doses not affect the applicant in any way specially that the discrepancy is on the packing list. The requirement for calling the LC number to apear on all docs are incorporated in the standard format of the banks and usually not specifically requested by the applicant.
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larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Partial omission of credit number
It may be presumptuous to assume that an incorrect LC no. would not affect the underlying transaction. In some countries, importation and/or access to hard currency is only permitted subject to the issue of LC which in turn is monitored by the Central Bank. The documentation presented to Customs must quote the correct relevant no. to be permitted entry.
If there is no significant difference between LC123456 and 123456, why does the issuing bank include the first two characters ? If we accept 123456 in place of LC123456, should we also accept 23456 or 3456 ? Where do we draw the line ?
If there is no significant difference between LC123456 and 123456, why does the issuing bank include the first two characters ? If we accept 123456 in place of LC123456, should we also accept 23456 or 3456 ? Where do we draw the line ?
Partial omission of credit number
OBVIOUS OMISSION BY COMMON SENSE
We are glad that our common sense approach has been picked up by a viewer of the DC PRO. The practice of putting LC number on each document is not necessary but certain bankers do enjoy doing this. The purpose is to identify the particular transaction or to creat a linkage amongst the documents and the LC. However, linkage may also be achieved by the data content of the documents to show that they belong to one and the same transaction and are that they are all related to that particular LC.
CUSTOMS CLEARANCE
From our trading experience, a customs officer in a developed country, such as Canada, should be a reasonable man and should have common sense. 123456 and LC123456 all refer to LC123456 by common sense. There should not be any major problem after explanation by the importer for such obvious typo error.
In a corruptive country, a customs officer would ask for money even if the documents are perfect. When we were in the export business, one country asked for nine approval chops in an import licence so that they all could have extra income. Some customs officers are father and son or sister and brother. So a typo would make no difference at all under such situations. The importer has to pay anyway. How much he has to pay depends on his relationship with the customs officers.
BANKERS NOT REQUIRED TO GUESS OR ADJUDICATE ON THE PURPOSE OF LC INSTRUCTIONS
A banker is not required to guess or adjudicate on the purpose of adding LC number in each docucment. If he does, he is stepping out of his safety zone in refusing the documents just for reasons based on his own assumptions.
We are from http://www.tolee.com
[edited 8/6/02 3:03:22 AM]
We are glad that our common sense approach has been picked up by a viewer of the DC PRO. The practice of putting LC number on each document is not necessary but certain bankers do enjoy doing this. The purpose is to identify the particular transaction or to creat a linkage amongst the documents and the LC. However, linkage may also be achieved by the data content of the documents to show that they belong to one and the same transaction and are that they are all related to that particular LC.
CUSTOMS CLEARANCE
From our trading experience, a customs officer in a developed country, such as Canada, should be a reasonable man and should have common sense. 123456 and LC123456 all refer to LC123456 by common sense. There should not be any major problem after explanation by the importer for such obvious typo error.
In a corruptive country, a customs officer would ask for money even if the documents are perfect. When we were in the export business, one country asked for nine approval chops in an import licence so that they all could have extra income. Some customs officers are father and son or sister and brother. So a typo would make no difference at all under such situations. The importer has to pay anyway. How much he has to pay depends on his relationship with the customs officers.
BANKERS NOT REQUIRED TO GUESS OR ADJUDICATE ON THE PURPOSE OF LC INSTRUCTIONS
A banker is not required to guess or adjudicate on the purpose of adding LC number in each docucment. If he does, he is stepping out of his safety zone in refusing the documents just for reasons based on his own assumptions.
We are from http://www.tolee.com
[edited 8/6/02 3:03:22 AM]