Tolerance

[SangeethaSV]

Case:
As per LC field 39A there is a tolerance on DC value "+ or - " DC value. Additionally field 47A also stipulates that : Tolerance of 10 % plus or minus is acceptable on amount.

Qty required under LC 45A: 500 MT
Unit price as per LC 45A: USD 150/ MT

We have received drawing under this DC, with a shipment of 510 MT of goods and invoice value of USD 76500.00. While examining a document we considered the tolerance given for amount is also applicable to Quantity since the basic calculation of QTY X AMT = LC value is well within the DC total value (including tolerance). Moreover, the quantity is in measurable terms and since DC is silent about the tolerance , in our opinion plus or minus 5% on quantity is applicable as per 30(B).

However issuing bank has refused to honor the claim stating a discrepancy: Quantity over shipped by 10 MT.

we need this forum help to understand whether our opinion is valid or invalid with any supporting ICC opinions or DOCDEX decisions in order to refute or accept the discrepancy raised by issuing bank.

Thanks in advance.