If l/c contains:
general description of goods
partial shipment: not allowed and
field 39B contains: 'not exceeding'
does that mean that art. 30c is not to be applied in the sense that even more than 5% less than amount is allowed and that does not indicate partial/short shipment?
We have explanation that when words 'not exceeding' are included in l/c, it should be interpreted as that any amount 'up to' l/c amount is allowed, notwithstanding allowance of -5% as per article 30c
Do you understand the words 'not exceeding' in the same way?
thanks
Snježana
not exceeding
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EricLONGEPIERRE
- Posts: 12
- Joined: Fri Apr 05, 2019 5:17 pm
not exceeding
Dear Snjezana,
Your question is very justified and has been discussed at our counters as well. Especially when issuing banks give a maximum ( not exceeding) amount AND quantity and prohibit partial shipments.
We have the same interpretation as you. i.e. any quantity/amount up to the maximum given in the credit is acceptable, however I know that many colleagues apply anyway partially article 30 c, i.e. quantity of goods must be shipped at least for 95%. I intend to raise this problem at the upcoming 7th Global conference on Letter of Credit organized by ICC Austria beginning of June in Vienna and shall not fail to revert after my return.
Maya - Switzerland
Your question is very justified and has been discussed at our counters as well. Especially when issuing banks give a maximum ( not exceeding) amount AND quantity and prohibit partial shipments.
We have the same interpretation as you. i.e. any quantity/amount up to the maximum given in the credit is acceptable, however I know that many colleagues apply anyway partially article 30 c, i.e. quantity of goods must be shipped at least for 95%. I intend to raise this problem at the upcoming 7th Global conference on Letter of Credit organized by ICC Austria beginning of June in Vienna and shall not fail to revert after my return.
Maya - Switzerland