Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation?

Intro

Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule was dated after the latest date for presentation. The schedule also contained a certification that the documents were presented within the credit validity.

Does that certification prevent the issuing bank from raising a “late presentation” discrepancy?

Here is Mr. Old Man’s view.

Question

Dear Mr. Old Man,

Greetings of the day.

Appreciate your opinion on the below scenario.

• LC expiry date: 31 July 2026
• Latest date of presentation: 24 July 2026
• Documents are presented to the nominated bank.
• The nominated bank’s covering schedule is dated 3 August 2026.
• The covering schedule bears the following certification:

“We certify documents were presented within credit validity.”

In the above scenario, is “Late Presentation” a valid discrepancy?

Or will the above certification also hold good for late presentation?

Please advise.

Regards,

Priya

_______

Answer

Dear Priya,

Thank you for your question.

The issuing bank cannot determine a “Late Presentation” discrepancy merely from the date of the nominated bank’s covering schedule.

The date of presentation is determined by when the documents were actually presented to the nominated bank, not by the date appearing on the covering schedule.

Field 48 of the MT700 specifies the number of calendar days after the date of shipment within which documents must be presented for payment, acceptance or negotiation. If Field 48 is not stated, the presentation period is 21 calendar days after the date of shipment, where applicable, but in any event not later than the expiry date of the credit.

In your case, assuming that 24 July 2026 is the applicable latest date for presentation, the documents must have been presented to the nominated bank no later than that date.

If the documents were actually presented to the nominated bank on or before 24 July 2026, the fact that the nominated bank subsequently forwards them to the issuing bank under a covering schedule dated 3 August 2026 does not, by itself, constitute a “Late Presentation” discrepancy.

However, the certification “We certify documents were presented within credit validity” confirms only that the documents were presented before the expiry date of the credit. It does not confirm that they were presented within the applicable period for presentation.

“Credit validity” and the “period for presentation” are two different requirements. Therefore, if the issuing bank has no other evidence establishing that the documents were actually presented to the nominated bank on or before 24 July 2026, it may raise “Late Presentation” as a discrepancy.

In short, the key issue is the actual date of presentation to the nominated bank, not the date of its covering schedule.

Best regards,
Mr. Old Man