What can be wrong with the shipment of L C in installments?

Article 30 of UCP600 has specific requirements for the flexibility of the amount, quantity and unit price of the letter of credit: when the letter of credit does not specify the quantity of goods in the form of the number of packaging units or the number of pieces of the goods themselves, the quantity of goods is allowed to increase or decrease by 5%, as long as the total amount withdrawn does not exceed the amount of the letter of credit.

This is because the amount and quantity of letters of credit are generally allowed to increase or decrease by 10%.

Because UCP600 has an overflow short loading clause, that is, the number of letters of credit can fluctuate by 5%, but not more than the total amount of letters of credit, so that the maximum loading volume can be calculated. According to the specific requirements of customers, such as cotton cloth can have overflow short clothing, clothing is not allowed, and the above situation will occur.

The disadvantage of allowing partial shipment on the letter of credit is that the submission of documents may be scored twice, and two documents need to be made.

Partial shipment means that you can negotiate the time of partial shipment with the customer, but it is different if it is an installment shipment.

The main feature of installment shipment is that it must be shipped on time according to the installment time specified in the letter of credit, and if the first batch of goods is not shipped on time, the letter of credit will be invalid, that is, the second batch of goods can not be reloaded.

The key to the terms of partial shipment lies in the word "may", and can be shipped in batches or not in batches, and there is no specific specific can be divided into several batches, as long as the final shipment date before the full shipment or partial shipment, the total quantity and amount of shipment do not exceed the quantity and amount specified in the letter of credit.

However, the installment shipment must be carried out on the letter of credit, otherwise the discrepancy will cause a chargeback.

If the letter of credit allows partial shipment, then the partial shipment is not unfavorable to you, at most it is to go through the delivery procedures twice.

If partial shipment is not allowed, and the other party requires you to ship in partial shipments, the partial shipment will constitute a discrepancy, and the other party's bank can refuse to pay on this ground.

If partial shipments are permitted, both shipments must be shipped before the latest shipment date, otherwise there will be a discrepancy.

In general, allowing partial shipments is a favorable clause for the beneficiary and allows the beneficiary to have leeway in the shipment.

If the letter of credit only specifies the latest shipment period and does not specify when the first batch will be shipped, then you will be eligible as long as you ship the goods before the latest shipment date.

If the shipment dates for the first and second instalments are specified, the first instalment must be shipped before the shipment date of the first instalment, and if the first instalment is not shipped on time, the second instalment is declared invalid, i.e. the second instalment does not need to be shipped and the letter of credit has been terminated.

The latest shipment date number, under normal circumstances, the L/C stipulates that the document delivery period is 21 days after shipment, and your L/C date is the number, the time is very tight, and the document delivery time is very urgent.

The last batch will not be available until March 31, and there is no disadvantage in shipping in batches.