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PERIOD FOR PRESENTATION

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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

———-

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

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2 Comments

  1. Liza

    June 27, 2022 at 8:43 am

    Hi Sir,

    Appreciate if u could assist me.
    Details of LC
    1. Field 40A – Transferable.
    2. Field 45A
    THIS IS A TRANSFERABLE LETTER OF CREDIT. THE TRANSFER, IF REQUIRED MUST BE MADE THROUGH THE ADVISING BANK WHO IS REQUESTED TO ADVISE US THE UNIT TRANSFERRED AND THE TRANSFEREE’S NAME.
    Questions
    1. Are the two details above sufficient of an LC to be viewed as Transferable.
    2. 5 items are allowed to be transferred in a Transferable LC.
    But as per field no 45A, does this means only Units that will be transferred, the rest of the 4 items remains the same?

    Reply

    • Mr Old Man

      June 27, 2022 at 1:32 pm

      1/ An LC can be transferred when Field 40A states Transferable.
      2/ It can be trasferred as per sub-article 38 (g), that is to say, the rest items may be reduced or curtailed

      Reply

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