Conflict
of data or ‘data conflict’ is a unique concept in the annals of documentary
credit operations. It’s defined by sub-article 14(d) of UCP 600. Conflict of
data has an annoying habit of sneaking in and trapping the unwary exporter or
banker to upset the smooth flow of a transaction. One the one hand it concerns
non-documentary conditions in a credit vis-à-vis the data in documents that
form part of a presentation. On the other, it’s about inter-se consistency
among the documents presented as also the credit The issue of data conflict
under a non-documentary condition is addressed by Section A26 of ISBP 745 which
states thus:
When a credit contains a
condition without stipulating a document to indicate compliance therewith
(“non-documentary condition”), compliance with such condition need not be
evidenced on any stipulated document.
However, data contained in a stipulated
document are not to be in conflict with the non-documentary condition. For
example, when a credit indicates “packing in wooden cases” without indicating
that such data is to appear on any stipulated
document, a statement in any stipulated
document indicating a different type of packing is considered to be a conflict
of data. (emphasis added)
Conflict
of data as a concept still retains an aura of mystery in our minds. Hence the ISBP
goes to great lengths to clarify this point about data-conflict. There are examples
galore, of which only two are quoted below: .....(continued)
