Mr Old Man Q&A BILL OF LADING DATED PRIOR TO LC ISSUANCE DATE By Mr Old Man Posted on June 15, 2013 3 min read 8 1 17,987 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Kien Pass, Dong Giang QUESTION Dear Mr. Old Man If B/L dated 4 months before LC issuance date, is it acceptable? Do we consider as stale B/L? However, the documents were presented within presentation period as LC called for 21 days from LC issuance date. Special condition also stated that documents issued prior to LC issuance date is acceptable. Can we take the B/L as good? or Can we mark as a discrepancy? Any risk on negotiating bank? It’s very unusual to receive such B/L. Need your advice and opinion. Thanks! LMK ——– ANSWER Dear LMK, According to sub-article 14(i) a document may be dated prior to the issuance date of the LC, but must not be dated later than its date of presentation. So, unless prohibited by the LC, the described BL is acceptable no matter how long it is issued prior to the LC issuance date. There is no discrepancy. I do not think the negotiating bank would bear risks if negotiating the documents with such a BL unless the documents are later found not to comply with the LC terms and conditions and rejected by the issuing bank. However, I agree with you that such a BL is very unusual. You need to find out the reason why the BL was issued so early or whether it is a fraud…. If you feel uncomfortable with it, you had better refuse to negotiate. Best regards, Mr. Old Man ———– Dear Mr. Old Man Thanks for your prompt reply! In fact, I have been waiting very anxiously for your answer! I can handle with ease now that B/L can also be issued much more earlier as supported by sub art 14 (i) though it is rather unusual. We have nevertheless done diligent check and understood that LC issued late due to some contract issues that cannot be compromised. I must say that your invaluable advice and opinion have definitely helped me a lot to clear my doubts! Many thanks again for taking your precious time to help me solve the problem! Greatly appreciated! Have a good weekend! LMK
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?