COULD YOU PLEASE CONFIRM MY UNDERSTANDING THAT L/C WHICH REQUIRE PRESENTATION OF A CERTIFICATE OF ORIGIN EITHER ISSUED OR CERTIFIED BY LOCAL CHAMBER OF COMMERCE IS ALLOW THE PRESENTATION OF A CERTIFICATE OF ORIGIN ISSUED BY ANY CHAMBER OF COMMERCE WHERE EVER IT IS LOCATED?
[edited 8/23/01 12:02:29 PM]
LOCAL CHAMBER OF COMMERCE
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Nured-deenH
- Posts: 3
- Joined: Fri Apr 05, 2019 5:24 pm
LOCAL CHAMBER OF COMMERCE
From our consultancy experience, "Local" used in the description of a chamber of commerce may be regarded as an imprecise and unclear instruction, leading to confusions and disputes (ironically that keeps us alive), particularly if the DC has been transferred to a 2nd beneficiary who may be in another country.
If the DC requires a "local" chamber of commerce certificate, and provided it has not been transferred to a 2nd beneficiary in another country, then you have to do as the DC says. Otherwise please ask the issuing bank what it actually wants. "Local" for you it means Jordan and for us "Canada".
This term is in fact prohibited rather than discouraged in sub Article 20 (a) of the UCP 500. Perhaps disclosing the name of the issuing bank may help to discourage such malpractice in the future. However legal opinions have to be consulted for safety, although stating the true fact may not be subject to libel charges.
Article 21 of the UCP 500 may help you find the answer, we hope you may also search the DC Pro for past ICC opinions to help you.
We are from http://www.tolee.com
[edited 11/4/02 6:39:27 PM]
If the DC requires a "local" chamber of commerce certificate, and provided it has not been transferred to a 2nd beneficiary in another country, then you have to do as the DC says. Otherwise please ask the issuing bank what it actually wants. "Local" for you it means Jordan and for us "Canada".
This term is in fact prohibited rather than discouraged in sub Article 20 (a) of the UCP 500. Perhaps disclosing the name of the issuing bank may help to discourage such malpractice in the future. However legal opinions have to be consulted for safety, although stating the true fact may not be subject to libel charges.
Article 21 of the UCP 500 may help you find the answer, we hope you may also search the DC Pro for past ICC opinions to help you.
We are from http://www.tolee.com
[edited 11/4/02 6:39:27 PM]
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larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
LOCAL CHAMBER OF COMMERCE
Surely the key factor in any certificate of origin is in fact the origin of the goods. If the applicant considers that he should restrict the issue of these certificates to certain Chambers of Commerce, then he needs to be specific as to what is acceptable. In this case, "local" is non-specific and should be treated as such by all parties involved in the credit.
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hatemshehab
- Posts: 220
- Joined: Fri Apr 05, 2019 5:19 pm
LOCAL CHAMBER OF COMMERCE
We may have a scenario of a letter of credit issued in favour of a beneficiary in France but shipment is effected from Germany. The L/C is not transferable.
If we require "certificate of origin issued by local chamber of commerce" we could end up in two options before the beneficiary to exercise:
1. Obtain a certificate of origin from “local chamber of commerce” in Germany
2. Obtain a certificate of origin from “local chamber of commerce” in France.
We could equally assume that even if shipment is effected from France but the origin of goods is from Germany as stipulated in L/C, the beneficiary may still surrender the certificate of origin issued by the “local chamber of commerce “ in Germany.
Therefore I agree with Mr. Lee & Mr. Bacon that the word “LOCAL” is a broad term that has to be expressly worded to give precise location of the chamber of commerce, if the intention of the parties, especially the applicant is so.
If we require "certificate of origin issued by local chamber of commerce" we could end up in two options before the beneficiary to exercise:
1. Obtain a certificate of origin from “local chamber of commerce” in Germany
2. Obtain a certificate of origin from “local chamber of commerce” in France.
We could equally assume that even if shipment is effected from France but the origin of goods is from Germany as stipulated in L/C, the beneficiary may still surrender the certificate of origin issued by the “local chamber of commerce “ in Germany.
Therefore I agree with Mr. Lee & Mr. Bacon that the word “LOCAL” is a broad term that has to be expressly worded to give precise location of the chamber of commerce, if the intention of the parties, especially the applicant is so.