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WHERE TWO SETS OF DOCUMENTS ARE PRESENTED UNDER ONE COVERING LETTER (3)

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QUESTION

Dear Mr. Old Man,

I have this case as below:

We are the issuing bank, and we issued a shipping guarantee at the request of the applicant for USD30,000.

The nominated bank presented 2 sets of documents in one cover letter including:

Set 1: USD30,000

Set 2 USD3,000

Set 1 complies with the LC terms and conditions whereas Set 2 contains some discrepancies.

We would like to refuse Set 2. Can we do that?

Please share your opinion.

Thanks, and best regards.

KT

—–

ANSWER

Hi,

Yes, you can do that.

I would like to quote the related conclusion of ICC Opinion R670/TA581rev for your reference:

QUOTE

Where multiple presentations are made on the same day under the same L/C, a presenter would be well advised to create individual schedules in order to avoid any potential delays in situations where some presentations comply, and others do not.

Where more than one complete presentation of documents is made under one cover letter or schedule for the full amount of all the presentations, the presenter should be advised of the discrepancies in respect of the presentation(s) that do not comply. An issuing bank or nominated bank may request the beneficiary or presenter to provide agreement for the settlement of individual amounts for those presentation(s) that do comply. This does not negate the issuing or confirming bank’s obligation to honour the presentation(s) of documents that do comply.

UNQUOTE

Please also refer to my answer to a question similar to yours at WHERE TWO SETS OF DOCUMENTS ARE PRESENTED UNDER ONE COVERING LETTER – Mr. Old Man (mroldman.net)

Hope my answer is clear and helpful.

Best regards,

Mr. Old Man

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