Can the Issuing Bank Raise the Same Discrepancy Again?

Sometimes in LC practice, the simplest questions open the door to tricky details. Here’s one of those situations: a beneficiary fixes most discrepancies but forgets one. Can the issuing bank bring up that same old discrepancy again? Let’s see.

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Question (from Chanchal):

Dear Sir,

Simple question.

If the issuing bank sent advice of refusal to the negotiating bank with noted 5 valid discrepancies and returned the documents.

The beneficiary revised the documents and sent to the issuing bank via the negotiating bank.

The issuing bank scrutinized the documents and found that out of 5, four corrected and 01 yet to correct.

Can issuing bank re-send the same discrepancy?

Chanchal

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Answer (Mr. Old Man):

Dear Chanchal,

In your scenario, the issuing bank refused the documents with valid discrepancies and returned them to the beneficiary, who then revised the documents and re-presented them via the negotiating bank.

A re-presentation is treated as a new presentation. The issuing bank therefore has up to five banking days to examine the documents in line with sub-article 14(b) of UCP 600. If the re-presented documents still contain discrepancies—whether brand new or the same old ones not yet corrected—the issuing bank must issue a fresh notice of refusal as per sub-article 16(c)(iii).

So yes, the issuing bank can legitimately raise the same discrepancy again, because each presentation stands on its own. Think of it the same old story  in LC land—the same problem, just on a different day.

Best regards,

Mr. Old Man