Cows grazing. I took this photo along the road I rode to Ta Lang – a village of Co Tu ethnic people in Vietnam
QUESTION
Hi Mr. Old Man,
We’ve received D/A documents at 30 days sight. How to calculate the due date in this case? 30 days from the document arrival date or 30 days from the drawee’s acceptance date?
Our practice is that when the D/A documents arrive at our bank, we send the drawee the notice of document arrival at once or a few days later. The drawee may accept the documents on same day of receipt of the notice or a few days later.
Thanks a lot for your advice.
DM
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ANSWER
Hi,
D/A at 30 days sight means 30 days after the draft/documents is/are seen by the drawee (buyer). So, it should be commonly understood that for a draft drawn on the drawee at 30 days sight or after sight, the maturity date will be 30 days after the day the collecting/presenting bank presents the draft to the drawee (and not after the day the drawee accepts the draft).
It is unfair if the maturity is calculated based on the day the drawee accepts the draft. However, practice has shown that the collecting/presenting bank would send the drawee the notice of document arrival without presenting the draft/documents to the drawee and the drawee would wait for the goods to arrive at the destination port and then ask the bank to present the draft for his acceptance. In this case, the maturity would be 30 days after the acceptance day which is coincided with the presentation day.
Hope it is clear now.
Kind regards,
Mr. Old Man
Do do
December 21, 2014 at 12:06 pm
Dear Mr Old Man,
I read isbp 745 and feel confused some articles, please help me to clarify them:
1. para d18: when credit stipulates the details of one party, could b/l indicate that party and one more or two more others, or it is allowed to show only one party stipulated in l/c?
2. Para d9: why the name of country is no need to stated.
Thank you so much for your reply. I am so appreciated to your help.
mroldman
December 21, 2014 at 3:45 pm
Hi,
1. What I understand from paragraph D18 (a) is that a MMTD may indicate one or more notify parties in addition to the notify party required in the credit. There is no discrepancy.
This principle also applies to other transport documents including bill of lading, non-negotiable sea waybill, charter party bill of lading …
2. ICC has many times explained in their official opinions that there is no requirement in the UCP or international standard banking practice for the country name to appear against a stated city shown as the place of receipt, port of loading, port of discharge or place of delivery. Absence of the country name is not a reason for refusal, notwithstanding that such words are stated in the credit.
The above opinion has been incorporated into ISBP 745.
Kind regards,
Mr. Old Man
Do do
December 21, 2014 at 8:53 pm
Thanks for your reply. I confused a lot as reading para d18. In the first sentence, they says “one or more”, and in the second sentence, they also say “one or more”. I can understand that if LC requires more notify parties, b/l could show one. While my friend understand that if lc ask 1, b/l only shows 1. Thanks so much for helping me to clarify it.
And about para d9, after your explanation, i understand that the contry name need not be stated, but the city where the port located should be (not required) stated.