Uncategorized WHERE TWO SETS OF DOCUMENTS ARE PRESENTED UNDER ONE COVERING LETTER By Mr Old Man Posted on February 3, 2012 3 min read 3 0 2,644 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, The L/C allows partial shipments. Two sets of documents are presented under one covering letter for full claim amount. However, one set is compliant while the other is discrepant. QUESTIONS 1. Can the beneficiary make such a combined presentation?2. Can the issuing bank refuse two sets of documents because one set does not complying or just refuse the discrepant set and pay the complying one?3. Is there any ICC opinion on this case? Thank you.H.…………………. ANSWER 1. Yes. However, it is advisable for the beneficiary to present sets of documents under separate covering letters to avoid payment delay where one set complies and the other does not.2. The issuing bank can refuse the set which does not comply and must honour the compliant one.3. Yes. Please refer to R670/TA581rev. Here is their related conclusion: QUOTEWhere 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.Best 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?