Pre-Export Verification of Conformity (PVoC) Certificate - Part II

On the previous pages we have explained Pre-Export Verification of Conformity Programme and basic applications of PVoC certificate under letters of credit transactions. On this page we will further analyse PVoC certificate in terms of letter of credit rules and international standard banking practices.

What does letter of credit rules say about Certificate of Conformity issued in regards to PVoC programmes? 

Certificate of Conformity is explained in ISBP 745 under title "Analysis, Inspection, Health, Phytosanitary, Quantity Quality And Other Certificates ("Certificate")".  Here are the important points of consideration;
  • According to ISBP 745 title of the document is not important. ISBP states that "...titled as called for in the credit, or bearing a similar title or untitled...". According to ISBP 745 the important point is the function of the document as ISBP states "...that fulfils its function by certifying the outcome of the required action...".
  • Inspection of goods must take place before shipment and this must be indicated on the certificate one of the following methods,
i- issuance date of the certificate is no later than the date of shipment
ii- even if the issuance date of the certificate is after the date of shipment a statement must indicate that inspection took place before shipment or similar effect.
iii- title of the certificate must be indicating the event, for example, certificate titled as "Pre-shipment Inspection Certificate". 
  • A certificate is to be issued by the entity stated in the credit.
  • When a credit does not indicate the name of an issuer, any entity including the beneficiary may issue a certificate.
  • When a credit makes reference to an issuer of a certificate in the context of its being "independent", "official", "qualified" or words of similar effect, a certificate may be issued by any entity except the beneficiary.
  • The consignor or exporter indicated on the certificate may be an entity other than the beneficiary of the credit or the shipper as shown on any other stipulated document.

This was the 3rd and last page of article series writen on the subject of "Pre-Export Verification of Conformity (PVoC)". Please read previous articles to understand the subject better.

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What does letter of credit rules and international standard banking practice say about Certificate of Conformity issued in regards to PVoC programmes? 
We will have a look at the application of Pre-Export Verification of Conformity, which will be called as PVoC from now on, in letters of credit transactions. This page is part two.

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