Read the following scenario and answer the discrepancies: An advising bank prese
ID: 2563190 • Letter: R
Question
Read the following scenario and answer the discrepancies: An advising bank presents documents to you for payment. How would you respond to each of the following discrepancies? Explain your answers:a. The letter of credit calls for an ocean bill of lading. The seller presents a trucker’s bill of lading showing shipment to an ocean port.
b. The sales contract and the letter of credit call for shipment of “Soda Ash Light.” The invoice shows shipment of “Soda Ash Light,” but the bill of lading describes the shipment as “Soda Ash.”
c. The letter of credit calls for shipment of 1,000 kilograms. The invoice shows shipment of an equal amount in pounds.
d. The CIF contract with the letter of credit calls for onboard bill of lading to be dated by December 20. The bill of lading is dated December 20, but the insurance policy is dated December 21.
Read the following scenario and answer the discrepancies: An advising bank presents documents to you for payment. How would you respond to each of the following discrepancies? Explain your answers:
a. The letter of credit calls for an ocean bill of lading. The seller presents a trucker’s bill of lading showing shipment to an ocean port.
b. The sales contract and the letter of credit call for shipment of “Soda Ash Light.” The invoice shows shipment of “Soda Ash Light,” but the bill of lading describes the shipment as “Soda Ash.”
c. The letter of credit calls for shipment of 1,000 kilograms. The invoice shows shipment of an equal amount in pounds.
d. The CIF contract with the letter of credit calls for onboard bill of lading to be dated by December 20. The bill of lading is dated December 20, but the insurance policy is dated December 21.
Read the following scenario and answer the discrepancies: An advising bank presents documents to you for payment. How would you respond to each of the following discrepancies? Explain your answers:
a. The letter of credit calls for an ocean bill of lading. The seller presents a trucker’s bill of lading showing shipment to an ocean port.
b. The sales contract and the letter of credit call for shipment of “Soda Ash Light.” The invoice shows shipment of “Soda Ash Light,” but the bill of lading describes the shipment as “Soda Ash.”
c. The letter of credit calls for shipment of 1,000 kilograms. The invoice shows shipment of an equal amount in pounds.
d. The CIF contract with the letter of credit calls for onboard bill of lading to be dated by December 20. The bill of lading is dated December 20, but the insurance policy is dated December 21.
Explanation / Answer
a. The payment can be processed. Beacause title of the bill of lading is not important when checking the documents under letter of credit transactions
b.The payment can be processed as two or more documents contains the name correctly. Sales contract and invoice matches with the letter of credit. Bill of lading is just a shipment document and name is not different but not elaborated.
c.The payment can be processed. Units of Measurement may be different but the quantity is same which is acceptable
d.The payment shuld be hold as the insurance need to be taken for the shipment day.
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