Home Uncategorized WHEN LC REQUIRES PRESENTATION OF LESS THAN A FULL SET OF ORIGINAL BILLS OF LADING

WHEN LC REQUIRES PRESENTATION OF LESS THAN A FULL SET OF ORIGINAL BILLS OF LADING

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QUESTION

Dear Mr. Old Man,

L/C required:
– 2/3 original bills of lading
– Beneficiary’s certificate certifying that 1/3 original bill of lading has been sent directly to the applicant within 3 working days after shipment date.

Documents presented included 3/3 original bills of lading and the beneficiary’s certificate with the required certification.

The issuing bank raised the discrepancy “3/3 original bill of lading presented instead 2/3 as required by the L/C”.

Was the discrepancy valid for refusal?

Looking forward to your early answer.

Thanks and best regards,
J.
——–

ANSWER

Dear J.

In 2007 I ever answered the same question in www.letterofcreditforum.com that there was no discrepancy while other experts said it was a discrepancy. My reasoning at that time was that 1/3 original bill of lading should be disregarded as it was an additional document.

Now I have to change my view because of ISBP 745 paragraph A29 (c), which says “When a credit requires presentation of less than a full set of original transport documents (for example, “2/3 original bills of lading), BUT DOES NOT PROVIDE ANY DISPOSAL INSTRUCTIONS FOR THE REMAINING ORIGINAL BILL OF LADING (emphasized by Mr. Old Man), a presentation may include 3/3 original bills of lading”.

It is understood from the beneficiary’s certificate that the beneficiary had to send 1/3 original bill of lading directly to the applicant within 3 working days after shipment date. Therefore, a presentation of 3/3 original bills of lading did not comply with the L/C requirement. The discrepancy raised by the issuing bank was valid.

Best regards,
Mr. Old Man

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4 Comments

  1. anonymous

    July 10, 2013 at 9:07 am

    Anonymous writes:I have heard about ISBP 745, so when it will come into effect, Mr.Oldman?

    Reply

  2. mroldmanvcb

    July 10, 2013 at 1:07 pm

    It is expected to be available in this July. Wait and see.

    Reply

  3. themonster8x

    July 11, 2013 at 12:07 am

    hi mr Old man. Where can I see or download ISBP 745. Thanks so much

    Reply

  4. mroldmanvcb

    July 11, 2013 at 8:07 am

    Not yet published. Wait and see!

    Reply

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