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UCP 600 - Article 30 - Tolerance

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Fri, 12/12/2014 - 03:09
shikhar85
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Joined: 11/12/2014
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Sir,

I have a doubt regarding Article 30 in UCP that if nothing is mentioned regarding quantity and amount tolerance in a Letter of credit then what shall be considered (Either +/-5% or +/-10%)  regarding the same. kindly note that not even "about" or "approximately" words have been mentioned in letter of credit. 

Kindly elaborate.

Shikhar

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Mon, 12/29/2014 - 22:03
#1
akkirajulekha
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Joined: 12/29/2014
partial Shipments

Does the tolerance rule of 10%  for drawing credit amount apply even  when partial shipment is allowed.

For eg. If credit allows partial shipment of 30 MT each shipment ,where the total is 100MT and the credit amount is for US $ 4,500,000, can i draw an amount less than 10% of the credit amount after presenting documents for 30 MT?

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Sun, 12/21/2014 - 04:49
#2
Abrar
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Joined: 03/12/2009
Tolerance

In this case, with the LC being silent and all other things being equal, only 30b and 30c are relevant. 

If the goods are stated to be say, 1000kg of sugar (as opposed to say, 1000 crates of sugar) the LC may be drawn for quantity between 950kg and 1,050kgs provided the LC value is not exceeded. In addition, even if partshipments are not allowed, the value of the LC may be underdrawn by 5%, provided unit price (if mentioned) is not reduced 

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