ISBP rev. 2007 - Paragraph 64

NormandDArcy · Post by **NormandDArcy** » Fri Mar 28, 2008 12:00 am

Hello,

I would like to have some opinions on how to read the paragraph 64 of the ISBP rev.2007 in regard to the following case:

We had a presentation of documents under a credit which was showing as description of goods ''cosmetics'' (no quantity stipulated).

The invoice presented was indicating 10 kg cosmetics in box 1, 10 kg cosmetics in box2 and 1kg cosmetics - samples free of charge - in box 3.

My question is would you consider the samples to be acceptable in regard to the description of goods mentioned in the credit.

Regards

polterd · Post by **polterd** » Mon Mar 31, 2008 1:00 am

Dear Normand,
In respect of ISBP para.64 it is a discrepancy.
If you disregard ISBP (I do not recomend) you may invoke UCP600 art.18c (as your invoice's goods description do correspond with that appearing in the credit) and UCP600 art.14d (as invoice's goods description do not conflict with data in the document,any other stipulated docs or the credit. I presume the cosmetics samples are included in packing list, transport document and any other doc.that may show goods description.If not, you have another discrepancy)
Regards,
Bogdan

KimChristensen · Post by **KimChristensen** » Mon Mar 31, 2008 1:00 am

Dear Normand,

This is actually a tricky issue.

I often hear that “free of charge goods” is not acceptable because of §64. I do not think that is correct. The point they (in my view) is trying to make is that an invoice must not show merchandise not called for in the credit – then exemplify this by saying that this applies even where such merchandise is free of charge.

Basically my approach would be the following:

If the “free of charge merchandise” is clearly something that is mentioned in addition to the LC goods description – then I would not accept it.

If on the other hand the “free of charge merchandise” is part of a “detailing” of the LC goods description – I would accept it.

For your case I can not say definitely based on the information given – guess one would need to see the invoice. However if the samples are in fact “cosmetics” then my gut feeling tells me to accept the invoice

Best regards
Kim

DanielD · Post by **DanielD** » Fri Apr 04, 2008 1:00 am

Kim is right. See "Unpublished opinions 1995-2004" p. 168. (Stupid thing with these opinions is that we do not know what is still valid or not)
Daniel

ccastanedai · Post by **ccastanedai** » Fri Apr 04, 2008 1:00 am

I won't consider it as a discrepancy since it is the merchandise covered by the LC.Para 64 only focus on merchandise not called for in the creidt.

David

NormandDArcy · Post by **NormandDArcy** » Tue Apr 08, 2008 1:00 am

I would tend to agree with Kim.

I was thinking as well that the purpose of this paragraph is just to underline that no OTHER goods are to be shipped and shown in the invoice.

But as long as it is the same as what is actually required in field 45A of the credit, I see no reason to claim the indication of samples within the invoice as a discrepancy.

I would like to thank all of you for your much appreciated feedback on this topic.

Regards

GerhardH · Post by **GerhardH** » Thu Apr 17, 2008 1:00 am

From the practical point of view i would agree, but if you imagine the following situation: there must be only delivered the quantity of 1 kg cosmetics and the 2000 kgs samples are also delivered, in respect to the additional freight costs, this could cause a problem between the business partners.

Best regards
GerhardH