PRE- SHIPMENT vs. PRESENTATION PERIOD

QUESTION

Dear Sir,

Just a simple query as it has been kind of confusing for me.

Let’s say:

When pre-shipment is allowed and the L/C term in field 48 mentions:

“21 days from shipment date” (as the latest presentation period),

Can we quote a discrepancy on the grounds of late presentation?

If pre-shipment is allowed and the documents are presented within the validity of the credit, but the presentation was made after 21 days from shipment — is it still discrepant?

Please provide your valuable opinion on the same.

Sorry for pestering you with these silly questions.

As always, thank you so much for your inputs to ease our confusions.

Suraj

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ANSWER

Hi,

Even if the L/C allows pre-shipment, the beneficiary must still comply with the presentation period stated in field 48.

If the L/C stipulates that documents must be presented within 21 days from the date of shipment, then any presentation made after 21 days — even if within the overall L/C validity — may rightfully be considered a late presentation and subject to discrepancy.

So yes, the issuing bank can raise a discrepancy on the grounds of late presentation if documents are submitted after the 21-day period stated in the credit.

Best regards,

Mr. Old Man