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Latest Question

We received a LC with field 39A: +/-10. Field 44P: Allowed. Field 45A states numerous individual items in MT with their unit prices but does not show any total amount for each item. Field 45A does not have any statement for tolerance but field 47A states as follows: "30 PCT MORE OR LESS QUANTITY TOLERANCE IS ALLOWED FOR ITEMS 100 MT AND BELOW. 10 PCT MORE OR LESS TOLERANCE FOR TOTAL QUANTITY AND LC AMOUNT IS ACCEPTABLE." Would appreciate your views on the questions below: 1- We assume that UCP 600 sub-article 30 (b) is applicable for items above 100MT. So, items bearing more than +5% tolerance in quantity is a discrepancy. 2- Although multiplying unit price and quantity causes some individual items to exceed the 10% positive tolerance per item, the total amount does not exceed 10% of the total L/C amount. We assume this is not a discrepancy because the tolerance was stated as "TOTAL".

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