A corner of my garden
QUESTION
Dear Mr. Old Man,
Your comment on the following issue is appreciated:
The documents were presented to the issuing bank which refused the documents stating the discrepancy “Late presentation”.
The negotiating bank sent the issuing bank a message confirming that the documents were presented within LC validity.
Which bank is correct?
Thank you.
PT
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ANSWER
Hi,
As you did not provide enough information, my answer is based on my assumption that the LC is available with the negotiating bank by negotiation and date and place of expiry is in the beneficiary’s country.
The issuing bank should not raise the discrepancy “late presentation” based on the date of the covering schedule. Please note the negotiating bank has 5 banking days to determine if the documents are complying. The covering schedule may be dated any date within or subsequent to that period. That date is not the day of presentation.
So, if the negotiating bank confirms to the issuing bank that the documents were presented by the last day for presentation and within the LC validity and other terms and conditions are complied, the issuing bank is obliged to honour.
Kind regards,
Mr. Old Man
KM
March 18, 2015 at 8:02 am
it will be better and clearly if the nego bank insert an additional certification stating that ‘ We hereby certified that the documents were presented within the presentation period’
mroldman
March 18, 2015 at 9:08 am
Agreed.
Thanh thanh
November 14, 2016 at 8:47 pm
Dear Mr Old Man,
Please kindly help to explain this case for determining the presentation period.
Lc requires Cargo receipt.
In field 47, lc says: the shipment date on cargo receipt will be considered as the shipment date.
In field 48: docs must presented within 30 days after shipment date but within the valudity of lc.
Dear Mr Old Man, so the latest presentation date will be on expiry date or within 30 days after shipment date??? I’m so confused because field 47 extremely stated the shipment date being the shipment date on cargo receipt or could i disregard this???
Thanks and best regards,
Thanh thanh
mroldman
November 17, 2016 at 10:30 am
within 30 days after shipment date indicated on cargo receipt as stated in F47 but within the L/C validity.