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PLACE OF PRESENTATION

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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 in the LC 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 bank 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 documents 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

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2 Comments

  1. anonymous

    July 17, 2013 at 10:07 am

    Anonymous writes:At present, we still issue LC available with any bank by acceptance but stipulating that the place for presentation is at ben's country. If we stipulate the place for presentation at applicant's country or at issuing bank's counter, the ben does not accept because they want to be control time to present the docs at a familiar bank in their country.Is our stipulation accepted?

    Reply

  2. mroldmanvcb

    July 17, 2013 at 5:07 pm

    Hi,LC available by acceptance would require presentation of tenor drafts which are to be drawn on the issuing bank if the LC is available with the issuing bank or on a named nominated bank if the LC is available with that nominated bank. Your LC is available with any bank by acceptance and (I’m sure) it requires drafts to be drawn on your bank (i.e., the issuing bank). I must say such LC is badly issued. Under your described transaction, the place and date expiry in the beneficiary’s country is for the purpose of presentation of documents only and not for the purpose of acceptance as no nominated bank would agree to accept the drafts which are drawn on another bank.Kind regards,Mr. Old Man

    Reply

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