inspection cert.
inspection cert.
If LC calls for inspection cert. issued by independent surveyor, may we accept an inspection cert stating that the quality of goods not conformed to the purchase order as mentioned in the goods description.
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AbdulkaderBazara
- Posts: 256
- Joined: Fri Apr 05, 2019 5:15 pm
inspection cert.
If the LC has not provided the wording or data content of the certificate of inspection, the answer to your question is technically yes i.e. in accordance with article 21 of UCP 500 - the last statment of which reads as follows:
If the credit does not so stipulate (i.e the data content), banks will accept such documents as presented, provided that their data content is not inconsistent with any other stipulated document presented.
However, we should note here that this may not be the intention of applicant and may raise a dispute.
[edited 9/9/01 11:25:37 PM]
If the credit does not so stipulate (i.e the data content), banks will accept such documents as presented, provided that their data content is not inconsistent with any other stipulated document presented.
However, we should note here that this may not be the intention of applicant and may raise a dispute.
[edited 9/9/01 11:25:37 PM]
inspection cert.
From our experience in handling DC disputes, the answer to this "appearing to be educational" query may not be a straight forward and easy one. We only wish to raise two questions here and leave the answer to an individual member to figure out him/herself.
(1) Is the purchase order a document stipulated (required) in the DC?
(2) What is the meaning of "Quality of the goods not conforming to the purchase order"?
CLEAR AND PRECISE STATEMENT TO AVOID DISPUTES
If this statement is put into a court, from our experience, a barrister representing the beneficiary would most probably raise a query on what exactly this statement means. There are two possibilities, either the quality of the goods exceeds the specifications required by the purchase order (although this is unlikely but there is such a possibility anyway) or it is inferior to it.
This is a good example that a statement in an inspection certificate, like in a DC, must also be clear and precise, and water tight, leaving no chance for other interpretations to aovid disputes.
Risk management should not be confined only to the insurance department. It should apply to all staff members.
http://www.tolee.com
[edited 9/10/01 12:04:54 AM]
(1) Is the purchase order a document stipulated (required) in the DC?
(2) What is the meaning of "Quality of the goods not conforming to the purchase order"?
CLEAR AND PRECISE STATEMENT TO AVOID DISPUTES
If this statement is put into a court, from our experience, a barrister representing the beneficiary would most probably raise a query on what exactly this statement means. There are two possibilities, either the quality of the goods exceeds the specifications required by the purchase order (although this is unlikely but there is such a possibility anyway) or it is inferior to it.
This is a good example that a statement in an inspection certificate, like in a DC, must also be clear and precise, and water tight, leaving no chance for other interpretations to aovid disputes.
Risk management should not be confined only to the insurance department. It should apply to all staff members.
http://www.tolee.com
[edited 9/10/01 12:04:54 AM]
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hatemshehab
- Posts: 220
- Joined: Fri Apr 05, 2019 5:19 pm
inspection cert.
I always wonder why many banks do not require specific data in the documents called for in L/C. Many bankers assume that the title of the document is self-explanatory. The purpose of any documents under a letter of credit is to give comfort to the applicant in ascertaining him that he is not paying for nothing. If the bank requires a packing list one should not expect the so called packing list will specify everything about how goods are packed, the order, listing of items, manner of packing, etc. I have seen packing lists, certificates of weight, inspection certificates, phytosanitary certificates of useless effect simply because the L/C was not specific on its data content. They were presented entitled xxx certificate, brief description of goods, L/C No., that’s all.
On the other hand, we do care more for B/L and repeatedly require that goods to be shipped on board, B/L should be clean, it should be issued in full set 3/3, B/L showing costs additional to freight charges as per Article 33(d) are not acceptable, stale B/L is acceptable, etc. When some of these things are already covered by UCP 500 and others are not that accurate. So it is a waste of time for us, although we assume that our credit is watertight.
We should bear in mind that in certain L/C transactions the inspection certificate is as important as the B/L, therefore we should care to spend few more minutes and include the data content of the inspection certificate in the L/C.
On the other hand, we do care more for B/L and repeatedly require that goods to be shipped on board, B/L should be clean, it should be issued in full set 3/3, B/L showing costs additional to freight charges as per Article 33(d) are not acceptable, stale B/L is acceptable, etc. When some of these things are already covered by UCP 500 and others are not that accurate. So it is a waste of time for us, although we assume that our credit is watertight.
We should bear in mind that in certain L/C transactions the inspection certificate is as important as the B/L, therefore we should care to spend few more minutes and include the data content of the inspection certificate in the L/C.