On my previous article I have explained costs additional to freight in a letter of credit transaction according to the letter of credit rules, UCP DC, and International Standard Banking Practices, ISBP. I have also mentioned how costs additional to freight are shown on the transport documents and the possible consequences of prohibiting them in letters of credit. If you would like to learn more about these subjects please feel free to visit my related article titled with “Costs additional to freight”.
Today I would like to give you a real life example of costs additional to freight discrepancy on this article as follows:
Sample Letter of Credit:
+FULL SET OF AT LEAST 3/3 LONG FORM ORIGINAL (CLEAN ON BOARD) BILL(S) OF LADING ON THE PRINTED FORMS OF CARRIER PLUS ONE NON-NEGOTIABLE COPY ISSUED OR ENDORSED TO THE ORDER OF EXPO ARAB BANK PLC, NOTIFY APPLICANT SHOWING FREIGHT PREPAID AND SHOWING FULL NAME AND ADDRESS OF THE SHIPPING COMPANY AGENT OR HIS REPRESENTATIVE IN BAHRAIN.
+BILL(S) OF LADING SHOWING CHARGES ADDITIONAL TO THE (FREIGHT) MENTIONED IN ARTICLE 26 (C) OF THE UCP, 2007 REVISION, PUBLICATION NO. 600 ARE NOT ACCEPTABLE EXCEPT WHERE SUCH ADDITIONAL CHARGES ARE DEMURRAGE FEES FOR CONTAINERS
+SHORT FORM OR BLANK BACK BILL(S) OF LADING ARE NOT ACCEPTABLE.
Bill of Lading: Beneficiary of the letter of credit presented a bill of lading that contains a clause stating that "CARRIAGE TERM:FREE IN & LINER OUT"
Discrepancy: Documents refused by the issuing by due to the discrepancy indicated on the advice of refusal.