Uncategorized DOCUMENTS PRESENTED DIRECTLY TO THE ISSUING BANK By Mr Old Man Posted on August 23, 2013 3 min read 2 0 14,759 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, The issuing bank do not process the documents presented directly from L/C's beneficiary. They are return the document to BEN and requested to present the documents through the advising bank. I don't think the bank was right in this matter; please give me your idea/instruction for this Awaiting your feedback as soon as possible. Thanks and best regards,TH——– ANSWER Hi, According to sub-article 6 (a) UCP 600, a credit available with a nominated bank is also available with the issuing bank. So, the beneficiary may present the documents directly to the issuing bank bypassing the nominated bank. However, if this is the case, the issuing bank would be entitled to seek certain assurances prior effecting payment, e.g., to contact the named nominated bank (in case of restricted letter of credit) to ensure that no other drawing has been made which conflict with the presentation made directly to the issuing bank, or to request the beneficiary to present the original letter of credit to check if any related drawing has been made. Unless the credit excludes sub-article 6 (a) UCP 600 and/or stipulates that the documents must be presented to the issuing bank through the advising bank, the fact that the issuing bank returns the documents received and requests the beneficiary to re-present the documents through the advising bank is not in accordance with the spirit of ICC opinion R518/TA519, and hence, not acceptable What if by the time the beneficiary receives the documents returned by the issuing bank, the letter of credit has expired or the period of presentation is over? Anyway, the isuing bank must honour the comlying documents irrespective of whether or not the beneficiary agrees to re-present the documents through the advising bank. Kind 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?