Uncategorized WHERE LC AVAILABLE BY NEGOTIATION DOES NOT REQUIRE PRESENTATION OF DRAFTS By Mr Old Man Posted on July 9, 2014 1 min read 0 0 2,922 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Ferris Wheel in Da Nang – The world’s fourth largest wheel (?) QUESTION Dear Mr. Old Man, LC is available by negotiation but does not include Field 42c (Draft at…). Do we need to present drafts? Thank you. TM ————– ANSWER Hi, It is agreed that LC available by negotiation would require presentation of drafts. However, the LC in this case does not require presentation of drafts, therefore, there is no need for you to present drafts even if the LC is available by negotiation. Drafts presented in this case may be disregarded. Please refer to UCP 600 Article 14 (g), which says: “A documents presented but not required by the credit will be disregarded and may be returned to the presenter”. 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?