Name: XAVIER FORNT

Dear all,

Credit asking for 100 tables at 100? each.
Invoice showing 100 tables at 100? each and 1 chair as sample, without cost.

The bank refused payment stating article 18c.
The beneficiary said I have fulfilled all my obligations. Goods description corresponds exactly with credit description and I ask only for the amount authorized.

In the beneficiary point of view, art.18c is not a reason to refuse payment.

Acts correctly the bank refusing payment?


Best regards,
Xavier Fornt

Dear Xavier,

Thanks for using the single window.

Please see ISBP (2007) Paragraph 64 - especially 64,b:

64) An invoice must not show:

a) over-shipment (except as provided in UCP 600 sub-article 30(b)), or

b) merchandise not called for in the credit (including samples, advertising
materials, etc.) even if stated to be free of charge.


I trust this answers your question.

Best regards
Kim Christensen

Dear Kim

I agree with you, but the question is if a reference to the ISBP is enough to stop payments.

The lawyer of the beneficiary said credit is subject to UCP and not to ISBP.

Interesting question!

Thanks for your answer, and kind regards, Xavier

Dear Xavier,

One can of course argue like that; however as of practice - and striving
against having a uniform international view on how to examine documents - I
feel confident that prudent bankers in general follow the ISBP. It is not
only practice ... it is also practical :-)

I would also draw the attention to UCP 600 article 2; the definition of a
"Complying presentation":

Complying presentation means a presentation that is in accordance with the
terms and conditions of the credit, the applicable provisions of these rules
and international standard banking practice.

Note that the ISBP is a part of the "International standard banking
practice".

Note also the reference to ISBP in the Introduction to UCP 600.

Best regards
Kim Christensen