PLACE OF PRESENTATION

QUESTION

Hi Mr. Old Man,

Normally the place of presentation is the beneficiary’s city. Can the importer’s city be fixed as place of presentation?

Regards,
Hemant
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ANSWER

Hi,

It depends on the type of LC that the beneficiary’s country or the applicant’s country will be specified as the expiry place, i.e., the place where the documents must be presented on or before the expiry date or last day for presentation.

For LCs available with by negotiation, the expiry place would be the beneficiary’s country. The beneficiary would present the documents to his bank or a named nominated bank in his country for negotiation.

For LCs available by payment, by deferred payment or by acceptance, the expiry place would be the applicant’s country (issuing bank’s country). The documents must be presented to the issuing bank on or before the expiry date or last day for presentation.

For LCs available with a named nominated bank located in the country other than beneficiary’s country, the documents must be presented to that nominated on or before the expiry date or last day for presentation.

LC available with a nominated bank is also available with the issuing bank. If the beneficiary wishes to present the documents directly to the issuing bank bypassing the nominated bank, the document must reach the issuing bank’s counter on or before the expiry date or the last day for presentation.

So, if the applicant (importer) is located in the same city as the issuing bank and the LC in question is available with the issuing bank by payment , by deferred payment or by acceptance, the LC can state the importer’s city as the expiry place (place of presentation).

A long answer for a short question, isn’t it?

Kind regards,
Mr. Old Man