ICC Digital Library Forum

I would like to know whether a certificate of origin showing an invoice number different from the one submitted by the beneficiary is acceptable when the L/C allows for third party documents, knowing that the invoice presented is issued by the beneficiary of the L/C.

The paying bank refute the discrepancy raised by the issuing bank, considering that :
' As the certificate of origin is a third party document, it therefore bears the invoice number of the shipper rather than the beneficiary's'.

I have checked the ICC opinions and haven't find anything regarding the acceptance of inconsistency between the documents.
Antoine Samaha

The invoice no. quoted may be that of the beneficiary's supplier and the C/O may also be furnished by the same supplier. This is one explanation why the invoice no. on the C/O may be different to the invoice submitted, but there may be others. There is usually no requirement that the issuer of the C/O be the beneficiary.

Laurence

Antoine,

According to point 198 of the ISBP document 470/951rev3 “a certificate of origin must appear to relate to the invoiced goods either by containing a goods description not inconsistent with that of the credit or by any other reference indicating relation to the goods in a required document, e.g. invoice number.” From the details you have given, you do not seem to raise any issues concerning the C/O’s relation to the invoiced goods' description, thus, provided that the said doc. also complies with the requirements of Art. 20, I do not see this as a material discrepancy.

Usage of the clause “third party documents acceptable” could be problematic as you may end up with some incurable discrepancies. It should not be used unless it is your intention to have all documents including drafts & invoices issued by third parties [point 21(c) ISBP 470/95rev3].

T.O. Lee
On the “third party documents” clause I remember you were recommending “third party issuer of documents” instead, in order to be more exact.

Dimitri

For what it is worth, like I believe Dimitri & Laurence, I do not regard it as an ‘inconsistency’ where the invoice no quoted on the c/o is different from that of the invoice where the c/o has -on the face of it- been arranged by a party other than the beneficiary (permissible unless actually excluded by the credit provisions). As the matter is not at issue, I offer no comment on the situation where the c/o has -on the face of it- been arranged by the beneficiary.

‘GIGO’ RULE APPLIES IN UNCLEAR QUERIES

We do not respond to this query so far, as the information given is not adequate to warrant a good answer. There are many variables, such as

(i) Whether the invoice numbers are completely different or just an obvious or not so obvious typo?

(ii) What about the data content of the certificate of origin, any linkage created by the description of the goods, shipping marks and the like?

(iii) Who issues the certificate of origin, the beneficiary or a chamber of commerce?

(iv) Is the supplier also the beneficiary or a third party selling to the beneficiary? so on and so forth.

(v) Is the DC transferable? If yes, then existence of two invoice numbers is a special feature of such transferable DC. Otherwise this may be a footprint for trade frauds!

All these may affect the answer as whether the inconsistency (the invoice number quoted in the certificate against the commercial invoice itself) is deemed to be a discrepancy.

From our experience, sometimes the exact wordings used in the DC may also affect our decision.

That is why we do not give any opinion on enquiries for consultancy services received over the fax or email until we have seen ALL the documents. It is also human nature to tell a consultant only those data contents which are favourable to the enquirer. To avoid repeating the same message, we have posted a standard message in the “Enquiry” section of our homepage and ask the enquirers for our services to follow the instructions before they send us details of their cases

SOFTWARE ENHANCEMENT OF DISCUSSION FORUM

If the DC Pro software can be enhanced to show the actual documents in the Discussion Forum, then we can have a more clear understanding of the query to warrant a more accurate and reliable answer.

www.tolee.com

[edited 8/7/02 4:48:32 PM]