On the Term of L/C stated PARTIAL SHIPMENTS
What the meaning of Partial Shipment : Allowed and Partial Shipment : Not allowed. For what conditions buyer or seller must use both of term condition ?

Replying to [davindo]:
Once again, this is from my forthcoming book "Mastering Letters of Credit":

12.1 PART/PARTIAL SHIPMENT

Generally, partial drawings or part-shipments are allowed under the UCP unless specifically prohibited in the credit.

What we need to know are the following:
a) the definition of part shipment, or what constitutes part shipment, and
b) what are excluded from the definition of part shipment

Even if the carriages transporting the consignments represent the same mode of transport, leave on the same day for the same destination, it will still be considered a part shipment if the presentation consists of more than one set of transport documents evidencing shipment on more than one means of conveyance.

However, it will not be a case of partial shipment even if the presentation consists of more than one set of transport documents, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch, as long as transport documents indicate the same journey and the same destination, and evidence shipment commencing on the same means of conveyance.

Neither will a presentation consisting of more than one courier receipt, post receipt or certificate of posting be regarded as that of partial shipment if the courier receipts, post receipts or certificates of posting appear to have been stamped or signed by the same courier or postal service at the same place and date and for the same destination.
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Simply put, if the total amount of purchase is for US$50,000, then shipment of US$10,000 followed by that of $ 15,000 and lastly of goods value $25,000 would be termed as part shipment.

If the buyer does not want the whole quantity at one shot, or does not want to (or can not) pay for the total amount at one shot, or has a production plan in place and wants the goods to be purchased/received as per his manufacturing plan/schedule, he may ask for part shipment. This need not necessarily be under an LC.

Part shipment is different from 'shipment by installments' as defined in the UCP.

Replying to [Catalyst]:Thank you for the informations. I wanna ask you about the installement or guarantee of payment for seller if partial shipment allowed.Like your case of example if buyer doesn't want ( or can ) pay for the total amount at one shoot or has production plan in place & wants the goods to be received as per his manufacture schedule. Can the seller get the payment after first shipment?or have to wait another shipments untill fulfill total amount of order?how's the consequency for seller when ship for another shipment but the latest date of shipment has expired?

Replying to [davindo]:Your posting carries two questions. The points are as follwos:

(1) The LC should be valid for the entire period of presentation and shipment.

(2) Negotiation and payment should normally take place with each presentation. In other words, for each shipment there would be a presentation from the beneficiary/seller. The negotiating bank should pay the beneficiary for each presentation made, provided documents comply. The seller should get paid for every shipment made.

(3) If LC expires at some point, next shipment and presentation would be invalid. BUT, if the buyer still wants the goods, he can amend LC to extend the validity. OR, if the seller knows him well, can send documents as "collection bills" on * or DA basis.

Replying to [davindo]:
Partial shipments mean that you allow your supplier to ship part of the goods
you have ordered within the terms and conditions.

Partial shipments not allowed mean you need to ship the order in full according to what the buyer have ordered also within the terms and condition.

Miki

Replying to [Catalyst]:Thanks again for the info, and what do you mean by send document's as collection bills on * or DA basis?
Ussualy I do is , when buyer place an order for example 10 containers in 10 proforma invoice they will issue 10 L/C with term partial shipment : not allowed, the consequency is we have to pay L/C charge 10 times. My buyer advice me to avoid pay to much L/C charge with make all 10 containers order issue on one L/C so we just only pay once L/C charge and change the term of partial shipment is :allowed.Is it possible and safe?

Replying to [Speedmaster]:thank you for the info

Replying to [davindo]:

Nice know your question .

I want to give you some answer but Mr. Catalyst had given more . It is so detailed and steal my thunder .

Replying to [davindo]: THNKS

Replying to [davindo]:

That is the right way to go. It is safe.

Replying to [Catalyst]:I have been waiting your answer.I got It sir, thank you