REVISED  DOCUMENTS MUST BE RE-PRESENTED WITHIN THE PERIOD FOR PRESENTATION AND BEFORE THE EXPIRY DATE OF THE LC

QUESTION

Dear Mr. Old Man,

As per ICC Opinion R 819, the beneficiary had until expiry date of LC to replace or correct the documents and/or presentation period. The issuing bank is obliged to honour when upon re-submission, documents are determined to be compliant. The revised documents constituted a new presentation requiring examination as per art. 14 b.

Is the issuing bank obliged to honour if the revised documents are presented after the presentation period but still before the expiry date?

Thank you so much and I hope to receive your response soon.

Thank you,

KT

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ANSWER

Hi,

ICC Opinion R 819 can be interpreted as follows:

If the documents contain discrepancies, the beneficiary can revise the documents and re-present the revised documents within the period for presentation specified in the LC and before the expiry date of the LC. The revised documents constitute a new presentation and the issuing bank will exam the documents as per sub-article 14(b) UCP 600. The issuing bank must honour if the revised documents are determined to be complying with the terms and conditions of the LC.

In view of the above, the issuing bank may refuse the revised documents which are presented before the expiry date of the LC but later than the period for presentation specified in the LC.

Best regards,

Mr. Old Man