R786
UCP600 Article 3 How should the term “claim” be understood when a commercial invoice is required by the letter of credit, including signature, claim, and display details? (TA769rev) Letter of credit requirement: Commercial invoice must be signed, claimed, and display details. The letter of credit does not specify how the requirement for “claim” should be satisfied. The submitted invoice is stamped and signed by the beneficiary, but does not include a claim. The issuing bank raised a discrepancy stating that “the commercial invoice does not include a claim.” We disagree, citing UCP600 Article 3, paragraph 4. The issuing bank insists on this discrepancy and has deducted a discrepancy fee regardless. Please provide us with your official opinion on whether this discrepancy is valid or invalid. Analysis The letter of credit requires the submission of a commercial invoice, signed, claimed, and displaying details. The expression “claim” is not defined in the UCP and ISBP. When this expression is used, the letter of credit should provide more details on how this term is to be understood and applied. In this case, the letter of credit does not provide such additional details. As previously stated, the letter of credit requires the invoice to be signed, claimed, and display details. From the text of the discrepancy, it can be assumed that the invoice is signed and displays details, but does not include a claim (even though the letter of credit does not specify the wording of this requirement). Conclusion Even if the letter of credit does not specify the manner in which the invoice should claim, the absence of this statement is a valid reason for refusal. References: 1. China International Chamber of Commerce / International Chamber of Commerce China National Committee, organized translation, ICC Publication No. 785E, Compilation of Opinions 2012-2016, Beijing: University of International Business and Economics Press, 2019, P8-9