Uncategorized WHERE LC CONTAINS THE CLAUSE “NO THIRD PARTY DOCUMENTS WILL BE ACCEPTED” By Mr Old Man Posted on June 21, 2015 2 min read 2 0 5,882 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr A ride to Yellow Sand Beach QUESTION Mr. Old Man, It will be helpful if you could help me out regarding Transferable LC. I have got Transferable LC with Clause that ” No Third Party Documents will be accepted” and Buyer’ s bank has refused to amend this detail. But the B/L and Certificate of Origin and all will have third party as exporter. Please can you help me out as I am new to this and time is running out for LC Shipping time period. ———– ANSWER Hi, ISBP 746 paragraph 19 (d) says that “third party documents not acceptable” – has no meaning and is to be disregarded. So, in my opinion, the clause “no third party documents will be accepted” should be treated the same as the expression “third party documents not acceptable”, that is to say, it has no meaning, either and is to be disregarded. What’s more? The clause “no third party documents will be accepted” is ambiguous, hence, the applicant/issuing bank bears the risk of any ambiguity as per ISBP 745 paragraph (v). 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?