EXPIRY PLACE

7 Comments

1. 

   jenny-2012

   March 21, 2012 at 11:03 am

   Dear Mr Old Man,Under UCP600, copy BL is not treated as a transport document (a copy of transport document is not to be taken into account when calculating presentation period), right?I just confuse whether Issuing bank have other dicrepancy to give a true refusal decision?And: Is the Issuing Bank correct in its refusal decision?And my scenario, pls advice:"A standby letter of credit subject to UCP 600 was issued to back up an "open account" transaction where payment was made only 30 days after the "shipped on board" date. The standby required presentation of Drafts in duplicate, one Default Statement signed by the Beneficiary, one copy of Commercial Invoice and one copy of "shipped on board" B/L. It also specified that no presentation could be made until after default in payment. The Issuing Bank sent its Refusal Notice as follows:"We refuse to pay due to the following discrepancy in the B/L:The copy of B/L was presented more than 21 days after shipment, which is against the stipulation in UCP 600 article 14 (c)."Is the Issuing Bank correct in its refusal decision?"

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2. 

   mroldmanvcb

   March 21, 2012 at 11:03 pm

   I'm afraid the discrepancy raised by the issuing bank is not valid in this case. the statement "no presentation could be made until after default in payment" appears to override the 21 day default period which is calculated based on the shipment date indicated in the original B/L.

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3. 

   anonymous

   March 27, 2012 at 3:03 pm

   Anonymous writes:Thank you so much for your advice 🙂

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4. 

   anonymous

   November 27, 2012 at 6:11 pm

   Anonymous writes:Expiry Place.Hi Mr Old Man, re Jas's question, is it still possible for Beneficiary to present document to Issuing Bank direct? Will it consider discrepant if they do?Thank You.

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5. 

   mroldmanvcb

   November 27, 2012 at 11:11 pm

   Article 6 UCP 600 says "A credit available with a nominated bank is also available with the issuing bank". So, the beneficiary can make presentation directly to the issuing bank.

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6. 

   anonymous

   July 14, 2013 at 2:07 am

   Anonymous writes:Hi Mr Old manNormally place of presentation is beneficiary's city, Can Importer's city be fixed as place of presentation ? RegardsHemant

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7. 

   mroldmanvcb

   July 14, 2013 at 4:07 pm

   Hi,It depends on the type of LC that the beneficiary’s country or the applicant’s country will be specified in the LC as the expiry place, i.e., the place where the documents must be presented on or before the expiry date or last day for presentation.For LCs available with by negotiation, the expiry place would be the beneficiary’s country. The beneficiary would present the documents to his bank or a named nominated bank in his country for negotiation.For LCs available by payment, by deferred payment or by acceptance, the expiry place would be the applicant’s country (issuing bank’s country). The documents must be presented to the issuing bank on or before the expiry date or last day for presentation.For LCs available with a named nominated bank located in the country other than beneficiary’s country, the documents must be presented to that nominated bank on or before the expiry date or last day for presentation.LC available with a nominated bank is also available with the issuing bank. If the beneficiary wishes to present the documents directly to the issuing bank bypassing the nominated bank, the documents must reach the issuing bank’s counter on or before the expiry date or the last day for presentation.So, if the applicant (importer) is located in the same city as the issuing bank and the LC in question is available with the issuing bank by payment , by deferred payment or by acceptance, the LC can state the importer’s city as the expiry place (place of presentation).A long answer for a short question, isn’t it?Kind regards,Mr. Old Man

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