The Reasons to Cause the Discrepancies

文/俞春霞

The Reasons to Cause the Discrepancies

文/俞春霞

1 The discrepancies in L/C

In the international trade under the L/C settlement mode, when the full set of documents for negotiation presented by the seller (beneficiary) do not agree with the terms of the L/C including the information contained on the surface of the submitted documents and consisted with the documents requirements in the L/C. If there are discrepancies in the negotiation documents under the L/C settlement, the issuing bank or paying bank can refuse to pay. If so, the seller is in a passive position and facing serious risks. Settlement of exchange successful will depend on the buyer’s credit. If the buyer is willing to accept the documents, the seller will bear the punitive fee according to amount of the discrepancy. If the importer doesn’t accept documents accordingly, the seller will refuse to pay by banks.

2 The reasons of the discrepancies

Common discrepant documents have the following several forms: (1) the date more than by L/C validity; (2) the actual date of shipment and the L/C shipment date discrepancy; (3) the beneficiary/p more than 21 days of the issuing bank; (4) the shipping documents, such as not clean defective; (5) transport document category mistake or unacceptable; (6) did not comply with the bill of lading information requirements, (7) port of shipment, port of destination or transit port in conformity with the provisions of the L/C; (8) (9) draft above the person’s name, address, etc; (10) bill fill in error; (11) the goods didn’t agree weight tolerance execution; (12) on the invoice description of goods didn’t agree with the L/C; (13) invoice looked up the person’s name, address and so on do not tally with the L/C; (14) inadequate insurance amount, insurance proportion in conformity with the L/C; (15) of the insurance document issuing date later than a transport document issued by the date (unreasonable). (16) and insures the risk does not accord with L/C; All the documents (17) category does not accord with L/C; The currency is not consistent in all the documents (18); (19) draft, invoice or the amount of insurance document does not conform to that stipulated in the L/ C; (20) draft, transport documents and insurance document endorsement error or due but not endorsed documents (21) there is no need to sign or seal effectively; (22) the number of copies of documents do not agree with the L/C; All the documents (23) in the above shipping mark inconsistent; All the documents (24) in the goods quantity and weight of the above description is not consistent.

To bring about the reasons of discrepancies mainly has several aspects: personnel in the foreign trade company due to the limitation of business knowledge. it is difficult in the short term to be familiar with all types of letters of credit. When they make the documents, they often make mistakes. Negligence at work is also a factor in the production of discrepancies, such as the letter of company name wrong, amount information discrepancies, and so on.

3 The problem to be resolve

3．1 Understand the nature L/C

According to trade contract signed between the seller and the buyer to open L/C, L/C opened, however, becomes independent files of trade contract, and not attach to the trading contract. The issuing bank is a kind of independent responsibility to the beneficiary’s responsibility. We must assume that the nature of this reflects the L/C bank credit. From the nature of L/C, the L/C settlement firstly is a kind of bank credit. So the issuing bank is in its own credit as a guarantee of payment. But the bank do not bear unconditional obligation of payment. In order to reduce business risk, bank will review the documents strictly surface consistency. If the documents presented by beneficiary do not conform to the principle of L/C, issuing bank could have been dishonored. In the L/C settlement, documents can be divided into two categories, basic documents, including commercial invoice and transport documents, insurance documents, basic documents are essential and accompanying documents, such as certificate of origin, inspection certificate, customs invoice, packing list/weight list and beneficiary’s certificate, etc. But regardless of the kind of documents, documents must be logically consistent.

3．2 Comply with the operation specification

In accordance with the requirements of documents, beneficiary carefully examines and verifies the documents before documents required. We carefully review the documents to ensure that the documents are consistent, such as the sum of the gross weight in every documents.

作者單位
嘉興職業技術學院