WITHOUT DELAY IN URC 522

QUESTION

Dear Mr. Old Man,

Kindly assist in case of D/A shipments (90 Days after BL date), in how many days, the presenting bank should determine the presentation are complying or not.

According to URC 522, art. 1(C), if a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise the party from whom it received the collection or the instructions by telecommunication or, if that is not possible, by other expeditious means, without delay.

Best regards,

Usman Zada

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ANSWER

Hi,

According to ICC Banking Commission’s Technical Advisory Briefing No. 2, “without delay” is a recognized term within UCP 600, but is deliberately not defined due to the fac that the prcise interpretation of this term would depend upon the circumstances of each case. The term “without delay” does not signify an immediate action, or that an action is to be completed ‘at once’, it does imply a degree of urgency and attention that the concerned bank should apply. It means that the concerned bank must complete an action as soon as practicable.

I think the above interpretation of ICC Banking Commission may be also applicable to the te term “without delay” in URC 522.

Under documentary collections the collecting/presenting bank does not examine documents to determine complying presentation but would determine if the documents received appear to be as listed in the collection instructions. If any documents are missing or found to be other than listed, it shall advise, without delay, the party from whom the collection instruction was received.

There is no penalty clause for the collecting bank/presenting bank in case it delays advising the remitting bank that it refuses to handle the collection instruction or that some documents are missing but it must act as soon as practicable for that activity with due consideration to any give circumstance(s). I think within 3 to 5 banking days is reasonable time.

Best  regards

Mr. Old Man