Home › Forums › Letters of Credit

Short quantity shipped

1 reply [Last post]
Wed, 04/14/2010 - 10:58
ignorant bliss
Offline
Joined: 04/14/2010
Posts:
Printer-friendly versionPDF version

LC mentions - Part Delivery : Prohibited ; Description of goods: As per proforma invoice no. 123; Amount : USD 10000 ;Amount Specification : No amount specification.

Can I ship short quantity of goods if there are last minute rejections ?

What percentage of quantity can be short shipped in this case ?

What alternative is there besides amending the LC ?

‹ Standby LC via MT700 Is insurance mandatory ›
Top
Wed, 04/14/2010 - 14:33
#1
Abrar
Offline
Joined: 03/12/2009
Posts:
Short shipment

A very unusual LC in that it is silent about the nature of the goods!

However, moving on, the only relevant applicable article would be sub art. 30 (c). Quantity is not mentioned, and therefore the banks are not in a position to determine whether the goods have been short shipped at all, or even by what percentage.

The only issue that it can determine in the event of an underdrawing of the LC, is whether the underdrawing is less than 95% of the LC value. If the drawing is below 95%, the presentation will be discrepant, and if between 95%-100%, it will be acceptable.    

Top