Addressing the situation of steel import and export

  • Mr Mẫn
  • NEWS
  • 18/04/2019

A commercial import and export hot rolled steel business regulation- Steel with 5mm diameter.- Pay by L / C immediately and irrevocably.The exporter delivers and sets up the complete set of documents to produce L / C UCP, except for the commercial invoice of hot rolled steel with a diameter of 50mm.While the steel market is falling sharply, if receiving this shipment, the importer will lose heavily. Importers turn to issuing banks for help. Since the goods are delivered and the set of documents presented is no problem, except the difference between 5mm and 50 mm. Issuing banks and beneficiaries decide to catch errors of documents for reasons of this difference and refuse to pay.The bank announced that it had strongly protested, that they insisted that the goods were delivered correctly and that the documents had no flaws, the difference between 5mm and 50mm was due to a typo (because there was practically no type of construction steel. Any building with a diameter of up to 50mm) and at the same time, the Bank announces the reference specified in Article A23) of ISBP 745 as follows:Misspellings or errors typing. For example, a description of the goods shown as "mashine" instead of "machine", "fountan pen" instead of "fountain pen" or "modle" instead of "model" will not be considered as a conflict of data under UCP 600 sub-article 14 (d). However, a description shown as, for example, "model 123" instead of "model 321" will be considered as a conflict of data under that sub-article.


A23) Spelling or typing errors do not affect the meaning of the word or sentence containing the error, do not make the voucher false. For example, the description of the goods written "mashine" instead of "machine", "fountan pen" instead of "fountain pen" or "modle" instead of "model" will not be considered to conflict with the prescribed data. of UCP 600 paragraph 14 (d). However, the description of goods written, for example "model 123" instead of "model 321" will be considered to be in conflict with the data under UCP 600 clause 14 (d).According to you, who is right? Issuing bank or Bank notice? 


The winning part belongs to the issuing bank. Article 23 ISBP 745 specifies acceptable spelling and typing errors provided that these errors do not alter the meaning of the word or sentence. The number errors are not ignored. It is clear that between 5 and 50 there are completely different numbers. Even if it was a typo, it was not ignored, and it could not be attributed to the fact that there is no construction steel up to 5mm in diameter. It is clear that "love is right, reason". Bank notice lost event! The importer gets a good cry.


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