The second “pre-summer-vacation-ICC-Opinion-Review” is TA756rev that deals with description of goods.
Title: Second hand goods
UCP 600: article 14(e), article 18(c)
ISBP 745: Paragraph C5
Topic: Various discrepancies
Details of the query:
LC Goods description
HYDRAULIC DRILLING RIG ABI 12/14300 VIBRATOR VRZ 700 GL, AUGER DRIVE EBG – 3000 CONTRACT W/N DD 04.05.2011, ANNEX NO.1
CIP ..., Country B (INCOTERMS 2010)
Documents required by the LC:
1. INVOICE – 1 ORIGINAL AND 1 COPY, ...
2. CERTIFICATE OF QUALITY – 1 ORIGINAL, ...
The documents presented by the beneficiary showed the general goods description as:
“HYDRAULIC DRILLING RIG ABI 12/14300, VIBRATOR VRZ 700 GL, AUGER DRIVE EBG - 3000. CONTRACT W/N DD 04.05.2011, ANNEX NO.1 CIP ..., Country B (INCOTERMS 2010)”,
and in the detailed description of goods under item 1:
“SECOND HAND HYDRAULIC DRILLING RIG ABI 12/14300”.
The confirming bank refused the documents citing the following discrepancy:
“Invoice, Packing list and Cert. of Quality are showing that a second hand hydraulic drilling rig has been delivered, which is not as per L/C terms.”
Is the refusal correct?
The ICC Opinion:
The words “second hand” indicate a different category or classification of the goods.
The addition of the words “second hand” is grounds for refusal because the goods description in the invoice does not correspond with that in the LC.
Also description of goods in the packing list and certificate of quality, conflicts with the description in the LC.
The discrepancy is valid.
This review is written by LC Views.
For the full transcript of the Official ICC Opinion please contact ICC Books or DC-Pro.
Official Opinion TA756rev - Unpublished UCP 600
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