NOTICE OF REFUSAL

Dear Tu,

See my answer in RED

Best regards,
Mr. Old Man

________________________________________
From: Tú Hoàng []Sent: Fri 10/15/2010 4:36 PM
To: Nguyen Huu Duc (DNG)
Subject: UCP-600 question.

Dear Sir,

My name is M.Tú – a sophomore majored in BA at University of Foreign Trade – HCMC Campus.

A friend of mine recently asked me this and I found this inevitably irresistible to answer him (though my major has little or less related to this). Though having had a short but careful research on the matter, I strongly believe my answer is in a loss of proper knowledge by some points. Therefore, it's my hope that you can spare your precious time helping me with fixing the problem.

Here listed the question:

Is the following refusal notice acceptable for a DC subject to UCP 600?

"We refuse the documents and have found the following three discrepancies in the presented documents:

1. The port of discharge in the B/L is not the same as that stated in the DC.
2. Presentation after expiry.
3. Corrections in the certificate of origin are not authenticated by the issuer."

And below listed my answer:

[+] The above notice of refusal is lack of one among the three main parts of a standard single notice which is given to presenters (as stated in UCP600 A.16 C (iii) (a/b/c/d)). Therefore it's not valid/acceptable.

It is OK.
The notice of refusal is not acceptable as it does not state the disposal of documents in accordance with UCP 600 article 16 (c) (iii).

UCP 600 article 16 (c) is quoted below for your reference:
c. When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a single notice to that effect to the presenter.
The notice must state:
i. that the bank is refusing to honour or negotiate; and
ii. each discrepancy in respect of which the bank refuses to honour or negotiate; and
iii. a) that the bank is holding the documents pending further instructions from the presenter; or
b) that the issuing bank is holding the documents until it receives a waiver from the applicant and agrees to accept it, or receives further instructions from the presenter prior to agreeing to accept a waiver; or
c) that the bank is returning the documents; or
d) that the bank is acting in accordance with instructions previously received from the presenter. [/B]

[+] Regarding those discrepancies:

1. According to A21 (a)(iii), UCP600 requires a separate "on board notation" and the name of the vessel at the actual port of discharge/loading (as stated in the credit). The carrier's obligation is to firmly commit to discharge only at the specified port of discharge/loading.

2. Presentation period: 21 calendar days after the date of shipment. Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date (A6 e).
3. A letter of correction is required when corrections are necessary on the C/O. Generally speaking, corrections and alterations of information or data in documents, other than documents created by the beneficiary, must appear to be authenticated by the party who issued the document or by a party authorized by the issuer to do so. Specifically regarding UCP600, all corrections must be authenticated by the issuer of the respective documents (including both the issuing bank and the beneficiary).

Your answer in BLUE is not needed.

Is it okay, sir?