“Pre-summer-vacation-ICC-Opinion-Review” #2
The second
“pre-summer-vacation-ICC-Opinion-Review” is TA756rev that deals with
description of goods.
Quote
Title:
Second hand goods
Links:
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.
Full
transcript:
This review
is written by LC Views.
For the
full transcript of the Official ICC Opinion please contact ICC Books or DC-Pro.
Reference:
Official
Opinion TA756rev - Unpublished UCP 600
Unquote
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Kim