R213- The shipper's name on the L/C was X native produce and animal by products import and export corporation, Country A, but the shipper's name on the commercial invoice was X national native produce and animal by products import and export corporation, Country A. It should be noted that the term "shipper's" as used in this query actually meant the beneficiary. The name of the beneficiary on the commercial invoice displayed the addition of the word "national". This was considered as a discrepancy due to the fact that the document did not comply with the credit.
R584 (TA564rev) - The description of the goods in the credit stated "Men's suede jackets, plain suede fabric", whereas the goods description in the invoice stated "Men's suede jackets (imitation suede with 100 per cent polyester knitted backing) plain suede fabric". It was concluded that the word "imitation" indicated a different category or classification of the goods, which was in conflict with the goods description within the credit. The addition of the word "imitation" is not part of the description of the goods in the credit and provides a reason to refuse the documents on the basis that the goods description in the invoice did not correspond with that in the credit.
TA756 - The goods description in the commercial invoice included the addition of the words "second hand" which was not part of the description of the goods in the credit. The words "second hand" indicate a different category or classification of the goods. The addition of the words "second hand" was considered to be grounds for refusal on the basis that the goods description in the invoice did not correspond with that in the credit.
R208 - The description of goods in the credit included the words "Clock Movement" twice. The full description of goods in the letter of credit was: Clock Movement 'O.K.' BRAND QUARTZ CLOCK MOVEMENT WITH SWITCH. However, the description of goods in the invoice, bill of lading and packing list showed: 'O.K.' BRAND QUARTZ CLOCK MOVEMENT WITH SWITCH.
Logic would suggest that the first indication represented a general heading, whilst the second was part of a more detailed description of the goods. The words "Clock Movement" were missing as a general heading within the documents that were presented. However, the more detailed description of the goods was exactly as stated in the credit. It was concluded that the omission of the words "Clock Movement" was unimportant, based on the fact that the goods description stated in the documents complied with UCP.
R235 - A credit included a goods description stating "Pakistanese blue poppyseed". The presented Report on Quality and Weight described the goods as "Pakistanese blue (coloured) poppyseed". The opinion concluded that the addition of the word "(coloured)" made the description of the goods in the Report inconsistent with the description of the goods in the credit.
R419 - This Opinion included a question as to whether or not a 'discount' that is quoted in a commercial invoice but which is not authorised in the credit, would be acceptable, provided that the amount of the presented draft remained within the amount of the credit. The conclusion stated that a bank is under no obligation to accept an invoice for an amount which is greater than the L/C amount, but if the nominated bank elects to do so it binds all other parties, provided the settlement to the beneficiary is no greater than the value of the credit. An invoice that shows a deduction due to a 'discount' being granted would not be a reason, in itself, to refuse the documents.
R236 - This Opinion focussed on whether the price term in the description of goods in the invoice of 'F.O.B. Japan' would correspond with the price term in the description of goods in the L/C of 'F.O.B. Shimonoseki'. (Shimonoseki is a seaport in Japan). And if the above is a discrepancy, whether it is a discrepancy which would justify the refusal of documents under the terms and conditions of the L/C. Minority opinion: "FOB Japan" means inter alia that the price quoted is for delivery of the goods at the port of loading within Japan. Reference may be made to Incoterms 1990 wherein the definition of FOB means that the seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. "FOB Japan" is not a named port of shipment. The credit specifically indicates that the price of the goods covered were to be quoted as free on board Shimonoseki, a particular defined place. Majority opinion: There is an evidence from the bill of lading required in the credit and presented, that "Shimonoseki" is a port in Japan, as it says "Port of Loading: Shimonoseki, Japan", and that the invoice in question also names "Shimonoseki, Japan" as the place where the goods have been shipped from. While not a unanimous decision, the majority of the Group of Experts said, in this particular case, that the trade term "FOB Japan" indicated in the invoice should not be considered a discrepancy and the documents should not be refused.
R237 - A credit included the trade term "FOB Shanghai" within the description of the goods. The commercial invoice did not state "FOB Shanghai". When commercial parties mutually agree on trade terms by stipulating them in a letter of credit, they are bound by these terms as a material part of the contract. This position is taken irrespective of whether the trade term is stipulated in the credit as part of the description of the goods. The opinion concluded that the trade term "FOB Shanghai" is deemed to be a requirement to be satisfied by a statement on the commercial invoice. Since the commercial invoice failed to indicate the trade term "FOB Shanghai", the bank had the right to refuse the document.