commercial invoice

RolandLeupi · Post by **RolandLeupi** » Thu Jul 26, 2007 1:00 am

as per art. 18.a.i invoice should be issued by beneficiary (except as provided in art. 38)
art. 21.c. of ISBP 2007 referring to "third party documents acceptable" says that documents, except drafts, but including invoices, may be issued by a party other than the beneficiary.
Is that not a contradiction ?
Roland

NigelHolt · Post by **NigelHolt** » Fri Jul 27, 2007 1:00 am

Roland,

Sorry, but your reasoning is not clear to me. Would you care to elaborate?

Reagrds, Jeremy

RolandLeupi · Post by **RolandLeupi** » Fri Jul 27, 2007 1:00 am

Jeremy,
Under a presentation of documents under a credit bearing the clause "third party documents acceptable" an invoice issued by another beneficiary mentioned in the credit would be acceptable but not the draft ?
Roland

AsifMahmoodButt · Post by **AsifMahmoodButt** » Fri Jul 27, 2007 1:00 am

Hi
Since a LC(not transferable) is issued in favor of the beneficiary, only that beneficiary can request for payment under the lc by means of a draft payable to his order i.e. drawn by himself only and provided he has complied with all terms and conditions of the lc. By providing 3rd party documents(lcs calling for 3rd party docs overrides Art 18 A 1 if not expressely mentioned), that relate to the particular shipment/drawing which are in order, the bene has complied and hence can draw under the lc. Other benes cannot draw drafts and demand payment since the lc is not issued in their favor.
Regards
Jason
[edited 7/27/2007 1:27:01 PM]
[edited 7/27/2007 1:28:06 PM]

NigelHolt · Post by **NigelHolt** » Fri Jul 27, 2007 1:00 am

Sounds logical to me.

RolandLeupi · Post by **RolandLeupi** » Fri Jul 27, 2007 1:00 am

to the participants,
thanks to everybody for their participation. Now it's quite clear that only beneficiary may draw under the L/C. Maybe not formulated very clearly on my previous demand the draft must be drawn by beneficiary only. My question was however if draft must be issued by beneficiary only can the invoice be issued by another beneficiary, as indicated in ISBP 2007, revision 600, which states under art. 21.c., "including invoice". So drafts must be issued by beneficiary but not the invoice
Roland

AbdulkaderBazara · Post by **AbdulkaderBazara** » Sat Jul 28, 2007 1:00 am

There is only one beneficiary and this beneficiary will have the drawing rights under the LC.

When the LC allows third party documents, a party other than the beneficiary may issue the invoice; thus the expression “third party documents allowed” literally, for this credit, modifies article 18a(i) of UCP 600. Therefore, by issuing the invoice this party (the third party) will not be categorized as the beneficiary and, as far as this credit is concerned, he / she will not have the rights and obligations of the beneficiary of the credit.

Best
Abdulkader
[edited 7/28/2007 11:54:19 AM]

Shahed · Post by **Shahed** » Mon Jul 30, 2007 1:00 am

What about the deferred payment L/C where there is no requirement of draft ?

Shahed

JohnLim · Post by **JohnLim** » Thu Aug 02, 2007 1:00 am

hi

i would think that the onus is on the presenting bank or nego bank to ensure that the payment is to be made to the beneficiary as per the L/C.
Any comments from the rest?

Hong

Yahya · Post by **Yahya** » Fri Aug 03, 2007 1:00 am

Good point.
I agree with Hong that you must be sure that payment is to be done to the real beneficiary.
I also need to determine that the presentation were made by the real benef itself not the third party benef.

Regards,
Yahya