Unless LC Explicitly States Basis For Determinining Such Pre

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Jonathan
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Unless LC Explicitly States Basis For Determinining Such Pre

Post by Jonathan » Mon Nov 04, 2013 8:34 pm

Hi there, i somehow am confused by ISBP 745, para A6c "Copies of transport documents are not subject to any presentation period stated in the credit unless the credit explicitly states the basis for determining such presentation period. Otherwise, a presentation may be made at any time..."

So, if credit states in field 48 that all documents must be presented not later than 21 days after shipment date. Expiry date: Aug 24, 2013. Latest shipment date: Aug 03, 2013. Ocean B/L is called for in 03 originals and 03 copies.

Shipment effected on Aug 03, 2013.

On Aug 18, 2013, Issuing Bank received a presentation lacking 03 copies of B/L. Does this presentation constitute a discrepancy by the lack of 03 copies of B/L? Or this presentation is ok because ISBP 745, para A6c states that "Copies of transport documents are not subject to any presentation period stated in the credit unless the credit explicitly states the basis for determining such presentation period. Otherwise, a presentation may be made at any time..."

Can you guys give an example about "unless the credit explicitly states the basis for determining such presentation period."

Thank you so much.

jcduarte
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ISBP 745 A6c

Post by jcduarte » Tue Nov 05, 2013 4:04 pm

Hello Jonathan

ISBP 745 A6c actually states that if an l/c calls for "copies" of transport documents instead of originals, then period for presentation of documents by default (21 days) or stated in field 48 is not applicable.

In your example the presentation is discrepant due to "copies of b/l not presented".

But lets suppose, using your example, that l/c calls for 3 originals b/l, that shipment is done on Jul 25, 2013, and that docs are presented on Aug 20, 2013. In this case there is a discrepancy due to "late presentation". Now, if this same l/c calls only for 3 copies of bill of lading (i.e. no originals), then, according to isbp 745 A6c, said discrepancy does not exists unless there is an explicit condition in field 47, saying something like: "All documents required under this l/c must be presented not later than 21 days after date of shipment." or similar.

Other comments appreciated.

Regards

venkat3197
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i am confused

Post by venkat3197 » Wed Nov 27, 2013 5:19 am

dear Jonathan,

I am confused..can you please elaborate more for me..

jcduarte wrote:Hello Jonathan

ISBP 745 A6c actually states that if an l/c calls for "copies" of transport documents instead of originals, then period for presentation of documents by default (21 days) or stated in field 48 is not applicable.

In your example the presentation is discrepant due to "copies of b/l not presented".

But lets suppose, using your example, that l/c calls for 3 originals b/l, that shipment is done on Jul 25, 2013, and that docs are presented on Aug 20, 2013. In this case there is a discrepancy due to "late presentation". Now, if this same l/c calls only for 3 copies of bill of lading (i.e. no originals), then, according to isbp 745 A6c, said discrepancy does not exists unless there is an explicit condition in field 47, saying something like: "All documents required under this l/c must be presented not later than 21 days after date of shipment." or similar.

Other comments appreciated.

Regards

vmduc
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PARA A6c

Post by vmduc » Wed Nov 27, 2013 3:58 pm

As I understand, he means that:
If L/C call ONLY original B/L so if doc were presented later than 21 days from shipment date, it is disrepant.
if L/C call ONLY copy B/L without any special instruction on 47 or 48 (MT700), even these copies were presented later than 21 days it is not discrepant cause of Para A6 c.
if L/C call ONLY copy B/L but clearly stated in 47 or 48 that it requires ALL docs to be presented within 21 days fr shipment date, so now it is discrepant also cause of Para A6c.

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