Understanding the Place of Presentation in LCs

QUESTION

Hi Mr. Old Man,

I often see the place of presentation stated as the beneficiary’s country or city. But in some LCs, can the place of presentation be fixed as the importer’s city — for example, when the LC is available with the issuing bank?

Thanks and regards,

Hemant

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ANSWER

Hi Hemant,

It depends on the type of LC and the availability conditions stated in it. The place of presentation is where documents must be presented on or before the expiry date or the last day for presentation, as defined under UCP 600.

For example:

• If the LC is available by negotiation, the expiry place is usually the beneficiary’s country, and documents are presented to a nominated bank (or any bank, if freely negotiable) in that country.
• If the LC is available by payment, deferred payment, or acceptance with the issuing bank, the expiry place is typically the issuing bank’s location — i.e., the applicant’s (importer’s) country.
• If the LC is available with a nominated bank in a third country, documents must be presented there, and that becomes the place of expiry.

Also, an LC available with a nominated bank is also available with the issuing bank (unless otherwise stated). So, the beneficiary may choose to present directly to the issuing bank — but the documents must reach its counters no later than the expiry date or last day for presentation.

That said, there are cases in practice where an LC is available with the issuing bank, but the expiry place is stated as the beneficiary’s country.

This helps the beneficiary control the timing of presentation — they can submit the documents locally on the last day without worrying about international courier delays.

However, this arrangement is not common and not generally encouraged, as it may lead to confusion regarding the place where the documents must actually be presented and when the issuing bank is considered to have received them.

So yes, if the applicant (importer) is located in the same city as the issuing bank, and the LC is available with the issuing bank by payment, deferred payment, or acceptance, the place of presentation can be the importer’s city.

But remember:

“Not all roads lead to Rome” — and not all presentations must go straight to the issuing bank. The actual route depends on how the LC is structured: availability, nominated bank (if any), and expiry place.

A long answer for a short question — but that’s the world of LCs!

Kind regards,

Mr. Old Man