PERIOD FOR PRESENTATION

QUESTION

Hello Sir,

I read your articles online and your answers to some questions regarding the L/Cs.

I have a question:

If the shipment transit time is short, like 4-5 days and field 48 says 21 days to present the documents from the date of the BoL, we lose free 7 days’ time of port to release the shipment and maybe end up paying demurrage due to discrepancies in the documents but within 21 days from the BoL date.

So the question is, due to short shipment transit time, given the above scenario how can we as consignee avoid the demurrage?

Kind regards,

Arshad

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ANSWER

Hi,

Field 48 (period for presentation) specifies the number of calendar days after the date of shipment within which the documents must be presented for payment, acceptance, or negotiation. The absence of this field means that the presentation period is 21 days after the date of shipment, where applicable.

So, if you wish a shorter period for presentation, e.g., 10 days after the date of shipment you can request the issuing bank to issue LC to indicate the same in field 48.

If LC was issued with a 21 day period for presentation, you can request the issuing bank to amend  the LC with a shorter period. In case no amendment is made and the goods arrive before documents, to avoid demurrage you can request the issuing bank to issue a shipping guarantee in favor of the shipping company to enable you to receive the goods.

Kind regards,

Mr. Old Man