Uncategorized INTERPRETATION OF SUB-ARTICLE 14(B) By Mr Old Man Posted on April 28, 2011 3 min read 3 0 4,065 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION FROM K. Hi Mr. Old Man, I do not understand the last sentence of UCP 600 sub-article 14(b) “This period is not curtailed or otherwise affected by the occurrence on or after the date of presentation of any expiry date or last day for presentation”. Would you please elaborate on this statement? Give an example to support your elaboration. Thank you.K.————————————— ANSWER Hi K., Thank you for your question. UCP 600 sub-article 14(b) reads as follows: “A nominated bank acting on its nomination, a confirming bank, if any, and the issuing bank shall each have a maximum of five banking days following the day of presentation to determine if presentation is complying. This period is not curtailed or otherwise affected by the occurrence on or after the date of presentation of any expiry date or last day for presentation”. It is understood from the provision that notwithstanding that the expiry date or the last day for presentation falls on or after the day of presentation, these banks still have a maximum of five banking days following the day of presentation to determine if presentation is complying. It is not because of the expiry date or the last day for presentation falling on or after the the date of presentation that this period is reduced, say, to three or four banking days. The following example can help clarify the provision: L/C stipulates:Date and place of expiry: 26 April, 2011 VietnamLC available with Bank N by negotiationLatest shipment date: 15 April, 2011Documents to be presented within 21 days from shipment date but within the L/C validity. The beneficiary effected shipment on 12 April and made a presentation to Bank N on 26 April, which is also understood as the expiry date or the last day for presentation. Remark: Nothwithstanding that the L/C expired on 26 April, Bank N still have five banking days following 26 April to determine whether the documents presented are complying. In this case, the deadline for Bank N to determine the compliance of the documents is Tuesday, 3 May (assuming 29 and 30 April are not banking days as they fall on Saturday and Sunday). Best regards,Mr. Old Man