COPIES OF DOCUMENTS; COVERING SCHEDULE DATE AND LATE PRESENTATION

QUERY FROM KT
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Dear Mr. OLD MAN,

We, TF members of VCB Haiphong, have some questions that need your helps as follows:

Q1: L/C requires docs in 03 ORIGINALS and 02 COPIES . DOCS presented in 03 originals and 02 copies (but in photocopy of original).

Someone says it's discrepant because 'IN COPIES' means in COPY ONES (not ORIGINALS), as for ' B/L, C/O, INSURANCE CERTIFICATE ' the COPY of these docs are quite different from the PHOTOCOPY ones.

Q2: L/C requires docs presentation within 10 days after b/l date. But the last date for docs presentation is Sunday. On the COVER LETTER of the negotiating bank certifying that docs complied with L/C terms but dated on the next Monday. Do you think that it's acceptable?

Thank you for soon replies.

Best Regards
KimThuy VCB HP

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COMMENT
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Hi Kim Thuy,

Thanks for asking for Mr. Old Man’s opinion.

Q 1:
From your description it is understood that the document is required to be presented in 03 originals and 02 non-original copies. The key issue is whether a photocopy of an original document is regarded as original or non original. To answer your question I wish to quote from “The determination of an “Original” document in the context of UCP 500 sub-article 20 (b)” an opinion of ICC regarding photocopies:

Quote
3.4 Photocopies
Banks treat as non-original any document that appears to be a photocopy of another document. If, however, a photocopy appears to have been completed by the document issuer's hand marking the photocopy, then, consistent with sub-paragraph (A) above, the resulting document is treated as an original document unless it indicates otherwise. If a document appears to have been produced by photocopying text onto original stationery rather than onto blank paper, then, consistent with sub-paragraph (B) above, it is treated as an original document unless it indicates otherwise.
Unquote

It is not a discrepancy. Copies of the bills of lading/certificate of insurance are copies which are not originals. These can either be photocopies of the bill of lading/certificate of insurance or copies.

ICC answered a question similar to your question as follows:

Non-negotiable copies of the bills of lading are copies which are not originals. These can either be photocopies of the bill of lading or copies which are clearly marked as non-negotiable. Shipping companies or their agents will only sign the original bills of lading; non-negotiable copies are not signed (R364).

Q 2:
Instead of giving a new answer, I wish to quote here my related comment in www.letterofcreditforum.com 3 years ago:

Quote
Fri, 09/11/2009 – 13:43 — nhduc.dng
Covering Schedule Date and Late Presentation

Hi,

1) Covering schedule is not a document required under L/C and does not form part of the documents to be examinined, hence, the issuing bank should not raise the discrepancy "late presentation" based on the date of the covering schedule.
No discrepancy if there is a certification in the covering schedule certifying that all documents presented are complying with the credit terms and conditions, or there is a statement stating the date the documents presented, which is within the L/C validity and/or the last day for presentation.

Hereunder are some ICC related opinions:

R373
"Where a schedule is dated after the latest permitted date of presentation and/or expiry date , a statement certifying that the terms and conditions have been complied with will be sufficient evidence of presentation within the expiry date and/or last date for presentation."

R480
"Where such statement(s) do not appear on the schedule and an issuing bank rejects for credit expired and/or late presentation, a message from the negotiating bank confirming compliance with the date(s) will be sufficient evidence for the issuing bank to honour the documents."

Best regards,
Nguyen Huu Duc
Unquote

Also I had a related article published in VCB Newsletter not long ago.
Hoping it can be of your help.

Best regards,
Mr. Old Man