Partial Shipment allowed / Invoice and draft amount ?

[GerhardH]

Dear all,

I ask you for your assistance and your suggestions in the following matter:

+ L/C allows partial shipment
+ Documentary presentation are divided into several portions:
+ 5 percent against invoice and
bankguarantee as advance
payment
+ 65 percent against shipping
documents
+ 15 percent remaining balance
against invoice and acceptance
certificate.

At the beginning of the clause for shipping documents there is the following clause:

draft for 65 percent of the ccontract value i.e. EUR xxx.xxx,xx and the following shipping documents:
1. invoice
2. B/L
.....

Do you see any problems regarding the wording 'draft' (in singular) as here may be only issued 1 draft for 1 shipping documentation or would you also accept several documentations with lower draft amounts, because partial shipment is allowed ?

What about the advance payment and the remaining balance ? Would you want to see a breakdown on the invoice ?

Thanks for your suggestions.

Best regards
Stephan

[JessieLiew]

Dear Stephan,

I do not see any problems in the wording “draft” (in singular) and it should not pose a problem to your partial drawings to the credit. The applicability of words in the singular to include the plural and vice versa is already covered under Sub-Article 3 of the UCP600. If a draft is to be presented for the 65 percent drawings and the credit allow for partial shipment, then a draft is expected to be presented for each of the partial amounts of the 65 percent drawings of the credit.

Furthermore, I do not see any issue if you were to present a draft for your drawings of the advance payment and the remaining 15 percent.

Jessie