LC value is USD14,000-00 . Invoice presented showing USD14,000-00 less Compensation referring to PO not related to this LC - USD3,000-00 thus making the invoice amount to USD11,000-00. LC does mentioned any tolerance and under the description of goods no quantity and unit price mentioned. Partial Shipment not permitted.
Would this document be considered as discrepant?
Cheers
Tic-Tac
Commercial Invoice
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LeeHowSeng
- Posts: 15
- Joined: Fri Apr 05, 2019 5:19 pm
Commercial Invoice
There is no provision of UCP that covers this issue.
However, the practice outlined in paragraph 64 of ISBP is that....... an "invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit."
Also, ICC Opinion R361 covers a similar issue to your question and its conclusion is as follows:
"Provided a bank operates within the scope of sub-Article 37(b), it should accept a presentation of documents which shows a deduction for an advance payment. Ideally, reference to this prior payment should be reflected in the credit terms to avoid any unnecessary problems at the time of presentation."
However, the practice outlined in paragraph 64 of ISBP is that....... an "invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit."
Also, ICC Opinion R361 covers a similar issue to your question and its conclusion is as follows:
"Provided a bank operates within the scope of sub-Article 37(b), it should accept a presentation of documents which shows a deduction for an advance payment. Ideally, reference to this prior payment should be reflected in the credit terms to avoid any unnecessary problems at the time of presentation."