ICC Digital Library Forum

We received L/C exported rice with a term in field 47A as follows: "2 pct empty bags to be provided free of cost". This term is not mentioned in field 45A

So in what doc must we quote this term, in what doc can we quote this term?

1. B/L

2. Invoice

3. P/L

4. Other

++ In ISBP par.64b, invoice must not show goods not called for in L/C even if stated to be free of charge. So, if this term (2 pct empty bags to be provided free of cost) is quoted in invoice, is it considered to be a discrepancy?

Dear Nhan,

The answer seems to lie in the title of your query. It’s a non-documentary condition that should be disregarded as per sub-article 14(h).

For the applicant’s information and evidence, the beneficiary may issue an additional certificate certifying that 2% of empty bags have been provided free of cost. However, please also note that in accordance with sub-article 14 (g), such a document will be disregarded by the issuing bank.

To avoid the problem of non-documentary condition, the L/C should have stipulated that documents showing “2% of empty bags are provided free of cost” are acceptable, or just required a separate certificate to that effect.

Best regards,
N.H.Duc

[edited 10/12/2011 8:47:53 AM]

64b does not apply as there is a reference about the empty bags in the credit.
Now, as it is a NDC, this mention may not appear in the documents and if it appears it may be anywhere as long as it complies with 14d.
Of course the credit is not properly issued.
Regards
Daniel