WHETHER SUB-ARTICLE 14 (c) IS APPLICABLE

QUESTION

Dear Mr. Old Man,

LC stipulates:

• Field 48 (Period for presentation): Documents presented within the validity of the LC is acceptable”.
• Field 31D (Place and date of expiry): 20 June, 2013

Documents including BL presented on 19 June, 2013 showing B/L date as 20 May, 2013

Can we raise the discrepancy “late presentation” based on sub-article 14 (c) UCP 600?

Your comment is appreciated.

Best regards,
LN
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ANSWER

Hi,

According to SWIFT handbook, field 48 specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation. The period of time is expressed in number of days. The absence of this field means that the presentation period is 21 days, where applicable.

The described LC contains Field 48 which does not specify the specific number of days within which the documents must be presented but allows the documents to be presented within the validity of the LC.

It seems that by so stipulating in Field 48, the applicant/issuing bank intended to allow the documents to be presented on any day provided within the LC validity. As the documents were presented within the LC validity, hence, it should be accepted.

By the way, please also note that the applicant bears the risk of any ambiguity in its instructions to issue or amend the LC.

Best regards,
Mr. Old Man