The goods description was "Commodity: Steering Gear Poseidon 900-35". There was no mention of spare parts. The invoice of the beneficiary indicated the description as above. However the packing list indicated one package containing ‘spare parts'. The nominated bank refused the documents and cited ISBP 745 paragraph C12 (b), despite section C referring to invoices and the invoice making no mention of spare parts.
Questions were asked: (1) could the invoice have referred to spare parts? (2) can spare parts be mentioned in the packing list only; (3) if the description of goods were ‘xxx engine and related auxiliary equipment' or ‘xxx engine parts', would this allow for reference to spare parts?
Answers: (1) Yes, provided there is no implied different classification or nature of the goods. (2) Yes, reference in the packing list does not conflict with the description in the credit or the invoice. (3) Yes, both descriptions would allow for spare parts to be mentioned.
See opinion TA.860 for the full transcript of the above.