A China based company HBITC exported 500 metric tons of beans to a Britain based company Unicam. Payment by L/C. L/C stipulates shipment by installments in 5 lots corresponding to 5 months: 80 MT in March, 120 MT in April, 140 MT in May, 110 MT in June, and 50 MT in July. Partial shipment not allowed for delivery in each month. Port of shipment: main ports of China. Port of destination: main ports of Britain.
80 MT was shipped at port of Qingdao on March 15, 120 MT was shipped at the same port on April 20. Payments for these two shipments were received. Due to shortage of supply, only 80 MT was shipped at port of Qingdao on May 20, and the same vessel was instructed to go to port of Yantai to receive the other 60 MT on May 28. HBITC presented to negotiating bank documents including two different sets of B/Ls issued by the carrier at Qingdao and Yantai. The negotiation for payment was dishonored. Negotiating bank pointed out that the consignments were shipped in two lots on different dates at different ports, which constituted a discrepancy with the L/C stipulation that partial shipment not allowed for delivery in each month.
A China based company HBITC exported 500 metric tons of beans to a Britain based company Unicam. Payment by L/C. L/C stipulates shipment by installments in 5 lots corresponding to 5 months: 80 MT in March, 120 MT in April, 140 MT in May, 110 MT in June, and 50 MT in July. Partial shipment not allowed for delivery in each month. Port of shipment: main ports of China. Port of destination: main ports of Britain.80 MT was shipped at port of Qingdao on March 15, 120 MT was shipped at the same port on April 20. Payments for these two shipments were received. Due to shortage of supply, only 80 MT was shipped at port of Qingdao on May 20, and the same vessel was instructed to go to port of Yantai to receive the other 60 MT on May 28. HBITC presented to negotiating bank documents including two different sets of B/Ls issued by the carrier at Qingdao and Yantai. The negotiation for payment was dishonored. Negotiating bank pointed out that the consignments were shipped in two lots on different dates at different ports, which constituted a discrepancy with the L/C stipulation that partial shipment not allowed for delivery in each month.
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