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Documents without any invoice/amount/incoterms reference

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Fri, 06/26/2009 - 01:19
Ben82
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Joined: 04/18/2009
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Dear all,

I have a LC with an additional condition that states: "no documents, except the invoice, should refer to any invoice number, nor amount, nor incoterms, nor terms of payment".

It seems that i can make all the documents required without those references (certificate of origin, eur1, bill of lading, insurance). The link between the documents will be the LC number and the packing list number.

Moreover, we will ship the goods with an invoice, and send the documents to the bank with a different invoice (a proforma without the terms proforma...). Since there is no reference to the invoice in the documents this seems possible.

Could the bank refuse the documents since the operation it's not very crystal clear? :)

It seems (to me) that strictly on the base of the  UCP rules there are no discrepancies.

 

Regard

 

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Fri, 06/26/2009 - 08:07
#1
LC Sam
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Joined: 08/09/2007
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Typical Practice

Hi Ben82,

It sounds like your customer is doing a back to back letter of credit.  Terms as you have mentioned are very common in this practice.  What your client is doing is taking your documents, once honored by the issuing bank, and resubmitting them for payment under another letter of credit.  Of course they would not want to show the terms of their contract with you. You should be ok with your presentation under the letter of credit as you have mentioned. 

Best regards,

LC Sam

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Tue, 06/30/2009 - 04:19
#2
Ben82
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Joined: 04/18/2009
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Thanks

Yes, it's that case.

Thank a lot for the answer.

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