Q&A Uncategorized SINGLE NOTICE OF REFUSAL By Mr Old Man Posted on February 29, 2016 2 min read 9 0 3,358 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Trở về từ Cửa Khẻm QUESTION Dear Mr. Old Man, I have a case that needs your comment. The issuing bank examined the documents received from the presenter and decided to refuse. However, its notice of refusal was rejected by the presenter based on the reason that the discrepancy stated in the notice was invalid. The issuing bank sent another notice of refusal citing a new discrepancy immediately not later than the close of the fifth banking day following the day of receipt of the documents. Can the presenter reject the second notice of refusal if the new discrepancy is correct? If yes, what is the basis for the presenter’s rejection? Thank you. TD ———– ANSWER Hi, My short answer is YES. The presenter can reject the notice of refusal based on the first paragraph of sub-article 16 (c), which says “When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a SINGLE NOTICE [emphasis added] to that effect to the presenter”. The notice must incorporate ALL discrepancies. The second notice of refusal is not valid even when the new discrepancy is correct. ICC has given several opinions on the subject. Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?