A DOCUMENT COVERING MORE THAN ONE FUNCTION MAY BE PRESENTED AS SEPARATE DOCUMENTS

QUESTION

Dear Mr. Old Man,

Please help me with this case:

The L/C requires the following document:

“Certificate of Antibiotic and Chemical certified by NAFIQAD”

We presented two separate documents:

1. Certificate of Antibiotic
2. Certificate of Chemical

However, the bank refused the documents, stating that they should have been presented as a single document instead of two separate ones.

Please provide us with a valid reason to dispute the issuing bank’s refusal.

Thanks and regards.

Have a good day!

Q.

——-

ANSWER

Dear Q.,

No need to worry! Your presentation is acceptable under ISBP guidelines.

A requirement for a Certificate of Antibiotic and Chemical can be fulfilled in either of the following ways:

• By presenting a single document as required by the L/C.
• By presenting separate certificates (one for Antibiotic and one for Chemical), provided that:
• Each document fulfills its function as required.
• They are presented in the correct number of originals and copies as per the L/C.

This is clearly stated in ISBP 821, Paragraph A41:

QUOTE

A document required by a credit that is to cover more than one function may be presented as a single document or as separate documents that each fulfill their respective function.

For example, a requirement for a Certificate of Quality and Quantity can be satisfied by:

• A single document covering both Quality and Quantity
• Two separate documents: one for Quality and one for Quantity, as long as each document meets its function and complies with the L/C requirements regarding the number of originals and copies.

UNQUOTE

Therefore, the issuing bank’s refusal is unjustified, and you have valid grounds to dispute their decision.

Best regards,

Mr. Old Man