Mr Old Man Payment Q&A CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER? By Mr Old Man Posted on 2 days ago 2 min read 0 0 57 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr 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
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?