Mr Old Man Payment Q&A Place of Expiry in Vietnam vs. Availability with the Issuing Bank By Mr Old Man Posted on 6 seconds ago 5 min read 0 0 0 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Under UCP 600, the place where a credit is available is normally also the place for presentation. Accordingly, when a credit is available with the issuing bank, the expiry place would ordinarily be the issuing bank’s counter. But what happens when an LC is available with the issuing bank while the place of expiry is stated to be the beneficiary’s country? Does this conflict with sub-article 6(d)(ii) of UCP 600, and where must the beneficiary present the documents? The following question examines this uncommon but occasionally encountered LC structure. Question Dear Mr. Old Man, I have the following case and would appreciate your advice. Field 41A – Available With… By… Available with the issuing bank by payment Field 31D – Date and Place of Expiry 261231 Vietnam Does this stipulation conflict with sub-article 6(d)(ii) of UCP 600? Where is the deadline for presentation of documents? In Vietnam or at the issuing bank’s counter? Thank you. Best regards, PTT _____ Answer Dear PTT, Thank you for your question. Coincidentally, I have previously answered a very similar question. I quote it below for your reference. QUESTION LC states: Field 31D – Date and Place of Expiry 31082015 Vietnam Field 41A – Available With… By… Kuveyt Turk Katilim Bankasi A.S., Turkey by payment Field 48 – Period for Presentation 21 days after the date of shipment but within the credit validity. The beneficiary presents a bill of lading showing a shipment date of 21 July 2015. Under sub-article 6(d)(ii) of UCP 600, the place of the bank with which the credit is available is the place for presentation. Therefore, in my opinion, the place for presentation is Turkey, and the latest date for presentation is 11 August 2015. I would appreciate your comments. ___ ANSWER Normally, the place where the credit is available and the place of expiry are one and the same. Accordingly, if Field 41A states “available with the issuing bank by payment” (or by acceptance or deferred payment), Field 31D would normally state that the credit expires at the issuing bank’s counter. However, in practice, we occasionally encounter credits that are available with the issuing bank while the place of expiry is the beneficiary’s country. Although this is not common, it is acceptable. By stipulating the place of expiry in the beneficiary’s country, the issuing bank is effectively allowing the beneficiary to present documents to any bank in that country. The issuing bank undertakes to honour a complying presentation, provided the documents are presented to a bank in the beneficiary’s country on or before the expiry date, regardless of whether the documents reach the issuing bank before the credit expires. If, instead, the issuing bank intended that documents must reach its own counter before expiry, it should have made the credit available at its counter and specified the place of expiry accordingly. End of quote Conclusion The credit departs from the normal arrangement contemplated by sub-article 6(d)(ii) of UCP 600. Nevertheless, such a stipulation is acceptable and is occasionally encountered in international banking practice. Accordingly, the beneficiary may present the documents to a bank in Vietnam on or before 31 December 2026. Best regards, Mr. Old Man