QUESTION
Dear Mr Old Man,
I have a question that needs your opinion.
L/C required documents to be sent to the issuing bank in two lots but to save the mail costs the negotiating bank sent in one lot only.
The issuing bank raised the discrepancy “Documents sent in one lot instead of two lots”.
Is the discrepancy valid?
Best regards,
AN
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ANSWER
Dear AN,
The discrepancy was not valid for refusal.
According to ICC Opinion TA768, an instruction regarding the mailing of documents in one lot two lots is a bank-to-bank instruction and has nothing to do with the determination of their compliance with the terms and conditions of the L/C. If the presentation is compliant, the issuing bank must honour or reimburse according to sub-article 7 (c).
Best regards,
Mr. Old Man
