I would like to seek some advice on this credit we received.
Credit called for a 'Certificate of Quality issued by manufacturer' covering a shipment of Derum (wood/timber commodity).
Beneficiary himself issued the Certificate of Quality which merely states:-
Species : Derum
Size : 18mmX90mmX606/758/909MM
Profile : Tongue & grooved with end matched
We are unsure as to whether the certificate of quality is acceptable given that the credit did not stipulate the required data content . Beneficiary advised this is what the applicant required.
Thank you.
Certificate of Quality
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cynthiawong
- Posts: 7
- Joined: Fri Apr 05, 2019 5:30 pm
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hatemshehab
- Posts: 220
- Joined: Fri Apr 05, 2019 5:19 pm
Certificate of Quality
This document should be treated in view of article 21 of UCP 500. The credit did specify the issuer of certificate of quality; the manufacturer. Therefore the document issuer should indicate his capacity as a manufacturer and not an otherwise capacity. This will enable the bank to verify whether the document appear “on its face” to comply with credit terms and conditions or not.
It is very important to the beneficiary to indicate that he is the manufacturer and therefore he is issuing this certificate. If the beneficiary is not the real manufacturer there is no way to verify this in favour of the applicant who should have been more specific as to the issuer of the certificate. However if the certificate of origin, for example, shows a manufacturer other than the beneficiary’s name then there will inconsistency between the two certificates, even though assuming that both the beneficiary and the manufacture could be affiliated to each other or could be one person trading under different names.
It is very important to the beneficiary to indicate that he is the manufacturer and therefore he is issuing this certificate. If the beneficiary is not the real manufacturer there is no way to verify this in favour of the applicant who should have been more specific as to the issuer of the certificate. However if the certificate of origin, for example, shows a manufacturer other than the beneficiary’s name then there will inconsistency between the two certificates, even though assuming that both the beneficiary and the manufacture could be affiliated to each other or could be one person trading under different names.