MUST THE ISSUING BANK REIMBURSE WHEN THE NOMINATED BANK PROVIDES THE MISSING DOCUMENT ?

QUESTION

Dear Mr. Old Man,

LC issued by our bank required presentation of Inspection Certificate in 01 original and 02 copies. However, the nominated bank presented only 01 original and 01 copy.

We raised the discrepancy “Inspection Certificate: 01 original and 01 copies presented instead of 01 original and 02 copies”.

The nominated bank sent our bank another copy of Inspection Certificate and confirmed that the beneficiary presented all documents including 01 original and 02 copies of Inspection Certificate to their bank within the stipulated period for presentation and LC validity but they sent in error only 01 original and 01 copies to our bank. The nominated bank requested our bank to reimburse them.
Was the nominated bank correct or must our bank reimburse the nominated bank?

Thank you for your expert advice.

Best wishes,

J.B
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ANSWER

Hi,

In response to a query similar to yours, ICC was of the opinion that the initial discrepancy was valid. However, once the issuing bank received the second copy accompanied by the certification of the nominated bank as to its presentation with the other documents, the issuing bank must reimburse the nominated bank.

Please refer to ICC OpinionTA805rev.

Kind regards,

Mr. Old Man