WHEN DOCUMENTS PRESENTED IN A LANGUAGE OTHER THAN THE LANGUAGE OF THE CREDIT

QUERY FROM LisaVC – United States
Document in a foreign language

I have two different, but similar scenarios:

1. LC is issued in English and does not specify the language of the documents. A required document is presented in a language other than English. ISBP Paragraph 23 may or may not be relevant, as the document may or may not be issued by the beneficiary.

Do you:

a. have the document translated and examine for compliance with the credit as usual; or
b. reject the document as discrepant and require the beneficiary to provide a translation in order to examine?

If you reject the document and return, do you first have it translated for regulatory compliance checks? [This question is directed primarily at the Americans, but is valid for anyone who has to do regulatory compliance checks per their country's laws.]

2. LC is issued in English and does not specify the language of the documents. A document NOT required by the credit is presented in a language other than English.

Whether you return the document to the presenter or pass it on, do you have it translated first in order to do regulatory compliance checks? [Same comment as above; this question is directed primarily to Americans, but welcome opinions of all.]

Thank you much,
Lisa

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MR. OLD MAN’S COMMENT
N.H DUC – Viet Nam

Dear Lisa,

Unless otherwise provided by the credit, the documents presented under the credit should be made in the language of the credit. Hence, if the documents presented are made in the language other than the language(s) specified in the credit, the nominated bank acting on its nomination, the confirming bank (if any) or the issuing bank is entitled to reject.

With this in mind I wish to answer your questions as follows:

1.a No. A bank assumes no responsibility for translation. I wonder if your LC staff can translate the document made in Chinese or Vietnamese into English.

1.b It depends.
+ If our bank acts as the beneficiary’s bank that examines and forwards the documents to the issuing bank or negotiates the documents on a with-recourse basis, we would notify the beneficiary of the discrepancy and ask him to replace, if possible, with other documents made in the language of the credit or the language(s) specified in the credit and limited by our bank in our advice of the credit. If requested by the beneficiary, we may help translate the documents into the language of the credit, but we will agree with the beneficiary that we assume no liability for errors in translation (UCP 600 article 35).

+ If our bank is a nominated bank acting on its nomination, a confirming bank or .the issuing bank, we would reject the documents in accordance with UCP 600 article 16 (c). The beneficiary may replace with corrected documents but in any case such replacement must be made within the period for presentation and by the expiry date of the credit.

+ The answer is the same as the answer 1.a, the bank is not obligated to translate the documents for compliance check.

2. A document (irrespective of any language) presented but not required by the credit will be disregarded and may be returned to the presenter (UCP 600 article 14 (g)).

Best regards,
N.H Duc …