Applying UCP 600 and ISBP UCP 600 article 14 - Standard for Examination of Documents Sub-article 14 (d): LC calls for shipment of 5000 MT Rice of Indian and Sri Lankan origin Partial shipments allowed First drawing: Invoice states 3500 MT Rice Indian Origin Certificate of Origin states Rice Indian Origin Bill of Lading states 3500 MT Rice Data is not identical but is it conflicting?
25 Applying UCP 600 and ISBP UCP 600 article 14 - Standard for Examination of Documents Sub-article 14 (f): If a credit requires presentation of a document other than a transport document, insurance document or commercial invoice, without stipulating by whom the document is to be issued or its data content, banks will accept the document as presented if its content appears to fulfil the function of the required document and otherwise complies with sub-article 14 (d). Q. What are the requirements for a document to appear to fulfil its function? Q. Are document checkers supposed to become experts in documentation?
26 Applying UCP 600 and ISBP UCP 600 article 14 - Standard for Examination of Documents Sub-article 14 (f): How to determine a document fulfils the function of the required document? LC requires presentation of Inspection Certificate and Certificate of Analysis (no other details given). Inspection Certificates states “We hereby certify that we have inspected [STOP RIGHT HERE] …” Analysis Certificate states “We have analysed the consignment [STOP RIGHT HERE] …” the documents fulfil the function by the opening statements. The remainder of the document is subject to review according to sub-article 14 (d).
27 Applying UCP 600 and ISBP UCP 600 article 14 – Standard for Examination of Documents Sub-article 14 (h) If a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated and will disregard it. Issues: 1. Understanding the impact on the applicant 2. Ability of the issuing bank to enhance the wording in the LC 3. Action required by the beneficiary 4. Examination of such terms by a nominated bank
28 Applying UCP 600 and ISBP Sub-article 14 (h) – ICC Opinion TA. 644 approved April 2008 The conclusion to this opinion (as to the effects of a non-documentary condition that is misstated in one or more documents) includes: “According to sub-article 14 (h), banks will deem a non-documentary condition as not stated, (on the basis that there is no necessity for the beneficiary to provide any evidence of compliance) and will disregard it. Should the beneficiary, nevertheless, elect to insert such data on any other stipulated document then they must ensure that it does not conflict with the data in the credit. The view of the Banking Commission is that sub-article 14 (h) is not absolute and is qualified by the content of sub-article 14 (d).”
29 Applying UCP 600 and ISBP Sub-article 14 (h) – ICC Opinion TA. 644 approved April 2008 Simple examples to demonstrate the effect of the opinion given in TA.644:- LC states in additional conditions: Vessel must be less than 25 years old.
- Fall '12