{"id":689,"date":"2018-02-05T17:28:18","date_gmt":"2018-02-05T22:28:18","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=689"},"modified":"2019-04-07T06:12:40","modified_gmt":"2019-04-07T10:12:40","slug":"short-shipment-discrepancy","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2018\/02\/05\/short-shipment-discrepancy\/","title":{"rendered":"Short Shipment Discrepancy"},"content":{"rendered":"<p>Partial shipment can be defined as shipping the goods not whole at once, but in smaller consignment(s).<\/p>\n<p><span style=\"color: #3366ff;\">Partial Shipment Examples:<\/span> Let us assume that letter of credit requires shipment of 10 buses.<\/p>\n<p>If the shipper dispatches;<\/p>\n<ul>\n<li>8 buses under 1 shipment, makes a partial shipment<\/li>\n<li>4 buses under 1st shipment and 5 buses under 2nd shipment, makes a partial shipment<\/li>\n<li>5 buses under 1st shipment and 5 buses under 2nd shipment, makes a partial shipment.<\/li>\n<\/ul>\n<p>Letter of credit rules allow partial shipments and partial drawings, which means that an exporter could make partial shipments under a letter of credit as long as the credit terms do not dictate the contrary.<\/p>\n<p>In order to understand, whether or not partial shipments are allowed under a documentary credit, you need to look at \u201c<span style=\"color: #ff6600;\">Field 43P: Partial Shipments<\/span>\u201d within the swift message body.<\/p>\n<ul>\n<li>Field 43P: Partial Shipments: &#8220;<em>Allowed<\/em>&#8221; means that partial shipments are permitted<\/li>\n<li>Field 43P: Partial Shipments: &#8220;<em>Not Allowed<\/em>&#8221; means that partial shipments are not permitted.<\/li>\n<\/ul>\n<p>If a letter of credit prohibits partial shipments, the beneficiary must ship the goods in full quantity under a single shipment. (Please be noted that there are some tolerances exist in the letter of credit rules. Refer UCP 600 Article 30-c).<\/p>\n<p>Contrary acts will be punished by banks either with <a href=\"http:\/\/www.letterofcredit.biz\/index.php\/2018\/01\/29\/partial-shipment-discrepancy\/\">partial shipments effected<\/a> or short shipment effected discrepancies.<\/p>\n<h4><strong>Discrepancy Example: Short Shipment Discrepancy Under a Letter of Credit:<\/strong><\/h4>\n<p>A letter of credit has been issued in SWIFT format, subject to UCP 600, with the following details:<\/p>\n<p style=\"text-align: center;\"><span class=\"td_text_highlight_marker_blue td_text_highlight_marker\"><strong>Letter of Credit Conditions<\/strong><\/span><\/p>\n<p><strong>Field 50: Applicant :<\/strong> Auto Paint Importer Co. Ltd. 1800 Arnold Industrial Place 94520 CA USA<\/p>\n<p><strong>Field 43P: Partial Shipments:<\/strong> Not Allowed<\/p>\n<p><strong>Field 43T: Transhipment:<\/strong> Allowed<\/p>\n<p><strong>Field 45A: Description of Goods and or Services:<\/strong> Supply of 100% Acrylic Premium Quality Latex (Water Based) paints packed in 55 Gallon Drums. Price : 300 USD \/ drums Quantity: 80 Drums. As per Proforma Invoice No 100 dated 10.02.2014. Delivery Terms: CIF Long Beach Seaport California Incoterms 2010.<\/p>\n<p><strong>Field 46A: Documents Required:<\/strong> 3 original signed commercial invoices and 3 copies.<\/p>\n<p>The beneficiary presented a commercial invoice as shown on the below picture.<\/p>\n<p style=\"text-align: center;\"><span class=\"td_text_highlight_marker_pink td_text_highlight_marker\"><strong>Commercial Invoice<\/strong><\/span><\/p>\n<p><a href=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/commercial-invoice-short-shipment.png\"><img decoding=\"async\" class=\" td-modal-image aligncenter wp-image-696 size-full\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/commercial-invoice-short-shipment.png\" alt=\"short shipment discrepancy letter of credit\" width=\"614\" height=\"671\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/commercial-invoice-short-shipment.png 614w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/commercial-invoice-short-shipment-275x300.png 275w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/commercial-invoice-short-shipment-384x420.png 384w\" sizes=\"(max-width: 614px) 100vw, 614px\" \/><\/a><\/p>\n<p><strong>Discrepancy:<\/strong>\u00a0Short shipment effected. Letter of credit prohibits partial shipments. As a result, the beneficiary should have shipped 80 drums of paints in 24.000,00 USD full amount, but instead the beneficiary shipped 70 drums of paints corresponding to 21.000,00 USD, which is a partial letter of credit amount.<\/p>\n<p><strong>Reason for Discrepancy:<\/strong> Letter of credit prohibits partial shipments. Beneficiary should have shipped the goods in full quantity as called for in the credit under a single shipment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Partial shipment can be defined as shipping the goods not whole at once, but in smaller consignment(s). Partial Shipment Examples: Let us assume that letter of credit requires shipment of 10 buses. If the shipper dispatches; 8 buses under 1<\/p>\n","protected":false},"author":1,"featured_media":698,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[92,83],"tags":[128,125,84,133,134],"class_list":["post-689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-invoice-discrepancies","category-letter-of-credit-discrepancies","tag-commercial-invoice","tag-commercial-invoice-discrepancies","tag-letter-of-credit-discrepancies","tag-short-shipment","tag-short-shipment-discrepancy"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=689"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/689\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/698"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}