Home Mr Old Man CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?

CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?

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QUESTION

Dear Mr. Old Man,

We would appreciate your guidance on the following matter:

The L/C requires documents to be presented within 15 days after the Bill of Lading date, but the last permitted date for presentation falls on a Sunday.

The negotiating bank’s cover letter, which certifies compliance with the L/C terms, is dated on the following Monday.

Would this be considered an acceptable presentation?

We look forward to your response.

Best regards,

TK

—–

ANSWER

Hi,

The cover letter is not a document required under the L/C and is not subject to document examination. Therefore, the issuing bank should not reject the presentation based on the date of the cover letter alone.

If the cover letter includes a certification that the documents comply with the L/C terms, or a statement confirming that the documents were presented within the L/C validity and the last presentation date, then no discrepancy should be raised.

Relevant ICC opinions on this matter:

  • ICC Opinion R373:

If a schedule is dated after the latest permitted presentation date or L/C expiry date, a certification confirming compliance with the credit terms is sufficient to prove timely presentation.

  • ICC Opinion R480:

If such a certification is absent and the issuing bank rejects the documents for late presentation or expired credit, a confirmation message from the negotiating bank will serve as sufficient proof for honoring the documents.

I hope this clarifies your concerns.

Best regards,

Mr. Old Man

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