We frequently open L/C's where
the description of goods can be as follows
A) 500 sets latest shipment 30/05/05
B) 500 sets latest shipment 250 sets 15/04/05 250 sets 06/06/05.
.
If the first instalment of B is shipped late does that effect the shipment of A. (partial shipments permitted) Obviously B would be 'Shipment Schedule not adhered to' in that case but if 'A' was shipped late before the scheduled shipment date of 'B' would that affect 'B'
.
I have a CDCS exam tomorrow so I am wading through UCP and ISBP at the moment. I would rather be at Work!!
Article 41 (instalment shipments)
Article 41 (instalment shipments)
Dear Peter,
It is my opinion that it will impact 'B' shipment and all subsequent shipments. Article 41 stipulated that if any shipment not made within the period allowed, (including short/late shipped) it will cause cancellation (ceases to be available) of all present and future scheduled shipment.
It brought me another question regarding "shipment/installment schedule". Is that appropriate to incorporate the shipment schedule in field (SWIFT) 45A or it should be separately stipulated under special conditions? the reason I ask is that some one might argue that they are only part of description of goods NOT a condition (shipment schedule) of the credit.
Regards,
Albert
[edited 4/13/2005 5:48:41 PM]
It is my opinion that it will impact 'B' shipment and all subsequent shipments. Article 41 stipulated that if any shipment not made within the period allowed, (including short/late shipped) it will cause cancellation (ceases to be available) of all present and future scheduled shipment.
It brought me another question regarding "shipment/installment schedule". Is that appropriate to incorporate the shipment schedule in field (SWIFT) 45A or it should be separately stipulated under special conditions? the reason I ask is that some one might argue that they are only part of description of goods NOT a condition (shipment schedule) of the credit.
Regards,
Albert
[edited 4/13/2005 5:48:41 PM]
Article 41 (instalment shipments)
Good point.
Does it make any difference that 'A' and 'B' are two totally different types of goods with different order numbers.
Does it make any difference that 'A' and 'B' are two totally different types of goods with different order numbers.
Article 41 (instalment shipments)
Dear Peter,
It is very common that credit covers more than one typy of goods or purchase orders, the principle of article 41 is that if goods are not shipped (or not completely shipped) on or before the stipulted schedule, all remaining goods including the same or different type of goods or orders will become "ceases to be available".
Best regards,
Albert
[edited 4/14/2005 5:13:25 PM]
It is very common that credit covers more than one typy of goods or purchase orders, the principle of article 41 is that if goods are not shipped (or not completely shipped) on or before the stipulted schedule, all remaining goods including the same or different type of goods or orders will become "ceases to be available".
Best regards,
Albert
[edited 4/14/2005 5:13:25 PM]