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Spare Parts

02/02/2017

A recent ICC Opinion, TA.860, addressed the issue of ‘spare parts' being included within a packing specification.

 

The background was that a credit was issued indicating a goods description without mentioning ‘spare parts'.

 

The presented documents included an invoice and a detailed packing list, with the specifications within the packing list showing one package containing ‘spare parts'. The nominated bank refused the documents for this reason.

 

As mentioned in the analysis to the Opinion, in view of the fact that the description of goods on the invoice complied with that stated in the credit, the invoice complied with UCP 600 sub-article 18 (c).

 

In accordance with UCP 600 sub-article 14 (e), the description of goods in documents other than invoices may be in general terms not conflicting with the description stated in the credit. It was considered that the addition of ‘spare parts' to one package in the packing specification did not create a conflict with the description of goods stated in the credit. In addition, it did not provide evidence that goods additional to those stated in the credit had been shipped.

 

As stated in ISBP 745 paragraph C5, the description of the goods may also indicate additional data in respect of the goods provided that they do not appear to refer to a different nature, classification or category of the goods. ‘Spare parts' are not considered to be a different nature, classification or category of the goods shipped.

 

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