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amount, weight round up

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Thu, 07/22/2010 - 21:46
UCP800
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Joined: 02/28/2008
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Dear Expert,

 

May I ask for your opinion of the following :

 Invoice showing quantity 13596.50 kgs for USD10000.18

Cert. of Origin issued by Chamber of Commerce

showing quantity 13597 kgs FOB value USD10000.20 

May I treat it is acceptable?

 

Is there any ICC comment on this issue?

 Thank you for your assistance.

Regards,

LEUNG, KS

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Mon, 07/26/2010 - 00:06
#1
sairam
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Joined: 07/21/2010
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Certificate of origin

There is no exclusive article in UCP 600 explaining the document ‘certificate of origin’. There are references in International Standard Banking Practice (ISBP) on certificate of origin. 

If credit calls for a certificate of origin and a document is presented with the following contents it satisfies the requirement of the credit:

? Document should have the signature of the issuer.  
? Document should bear a date.  
? It should certify the origin of the goods.  (ISBP Para 181)

Contents of certificate of origin:  

1.Certificate of Origin should have relation with the goods invoiced. Description of goods in certificate of origin can be in general terms but must be consistent with the description stated in other document.  Should not be inconsistent with each other. (ISBP Para 183)
2.Consignee information in the transport document must be consistent with the consignee appearing in the certificate of origin. (ISBP Para 184)
3.If the credit wants the transport document with consignee name ‘to order’ or ‘to the order of the shipper’ or ‘to the order of Issuing bank’ or ‘consigned to issuing bank’, the certificate of origin may show the applicant or another party named in the credit as consignee. (ISBP Para 184)
4.If the credit is transferable and the second beneficiary presents certificate of origin showing the name of the first beneficiary as consignee, it will be acceptable. (ISBP Para 184).   
5.Consignor or the exporter shown in the certificate of origin need not be the beneficiary of the credit or the shipper appearing in the transport document.  (ISBP Para 185)

In view of the above in my view the quantity and value has no role to play in a certificate of origin.

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Mon, 07/26/2010 - 02:45
#2
Abrar
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Joined: 03/12/2009
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C/O

In view of the above in my view the quantity and value has no role to play in a certificate of origin

Agreed, but having completed the C/O referencing quantity and weight (although not necessarily required), such details must be consistent with the other documents, however inconsequential the inconsistency may at first hand appear. Art 14 d of UCP600 refers.

However excepting the above rationale, my view is that if looked at in a wider context with the whole presentation, the variance in the weight is so minimal, that it is unlikely to jeaopardise the integrity of the presentation under the LC, and so, should be accepted. In any case, the lesser of the two amounts is being invoiced.   

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Mon, 07/26/2010 - 04:21
#3
sairam
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Joined: 07/21/2010
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C/O

In terms of Art 14.f. of UCP 600, Credit should specify the contents of the document if the credit calls for any document other than invoice, transport document and insurance. If credit does not specify the contents of a document bank will accept the documents as presented provided the contents appear to fulfill the functions of the required document. 

In view of this I feel that one can ignore the amount if not specified as a requirement in C/O in the LC.  

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Fri, 07/23/2010 - 14:38
#4
LC Sam
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Joined: 08/09/2007
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Rounding

Hello Leung, I would say that the rounding on the weight is acceptable but the rounding on the FOB value is not. Typically you will see rounding on weights, but since currency values are exact amounts, they should only be rounded to the nearest unit of currency.

For example USD10,000.18 should not be rounded as the USD0.18 represents 18 cents (a full unit).  JPY 10,000.18 would be rounded to JPY 10,000 as there are no units that would cover the JPY 0.18.

I hope this helps you out.

Best regards,

LC Sam

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