Documents Presented By Beneficiary The Latest Date Of Shipment

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saikumar1208
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Documents Presented By Beneficiary The Latest Date Of Shipment

Post by saikumar1208 » Mon Sep 25, 2017 12:11 am

When two clauses of LC ( ex: i. Latest date of shipment to be read as 25-10-XX instead of 10-10-2017 and ii. All documents must capture the LC number )have been amended and the advising bank has advised the amendment to beneficiary. But beneficiary has not yet accepted the amendment, however in the documents presented by beneficiary the latest date of shipment is as per amendment and invoice does not capture the LC number.
1. In this case what would be the discrepancy ?
2. From the documents what would be concluded, whether tha beneficiary has accepted the amendement or not ??

varakantham26
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Re: Amendment of LC

Post by varakantham26 » Mon Sep 25, 2017 1:49 am

this is something a call needs to be taken. usually when a bank is not able to determine whether an amendment is accepted or not, it is always preferable to seek clarification from the presenting bank/beneficiary.

i would consider the amendment is accepted and quote the discrepancy of Invoice failed to evidence Lc no..

saikumar1208
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Re: Amendment of LC

Post by saikumar1208 » Tue Sep 26, 2017 9:37 pm

Dear varakantham,

If only one clause of amendement is reflected in documents it is treated as partial acceptance. But as per UCP partial acceptance is not treated as acceptance. Please justify

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Re: Amendment of LC

Post by cristiand969 » Tue Sep 26, 2017 10:09 pm

As per one of the ICC opinions, misquoting a L/c number on a document is not considered a reason for refusal as the purpose of stating l/c number is to identify to which l/c presentation refers to. Since the l/c was identified in the cover letter, the discrepancy is immaterial, and has no impact on applicant or issuing bank whatsoever. The issuing bank may face consequence of a bad practice. What is more important to the underlying transaction who caused amending l/c? Extending shipment to allow beneficiary to execute the contract or to nicely paint the document with L/C number? This discrepancy comes from an ancient lc time where doctrine of strict compliance applied

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Re: Documents Presented By Beneficiary The Latest Date Of Shipment

Post by dv01001 » Tue Oct 03, 2017 10:50 pm

agree that missing to quote LC number is a minor discrepancy and it's not the reason to refuse the payment. However, if the Ben fails to do such request, they can suggest to remove the wording in LC "All docs must show LC no" or only state that "All docs must show LC no except for the invoice" for next cases.

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Re: Documents Presented By Beneficiary The Latest Date Of Shipment

Post by anhphuoc892 » Mon Nov 13, 2017 10:25 am

saikumar1208 wrote:
Mon Sep 25, 2017 12:11 am
When two clauses of LC ( ex: i. Latest date of shipment to be read as 25-10-XX instead of 10-10-2017 and ii. All documents must capture the LC number )have been amended and the advising bank has advised the amendment to beneficiary. But beneficiary has not yet accepted the amendment, however in the documents presented by beneficiary the latest date of shipment is as per amendment and invoice does not capture the LC number.
1. In this case what would be the discrepancy ?
2. From the documents what would be concluded, whether tha beneficiary has accepted the amendement or not ??
For your question:
As per UCP 600 - Article 10, clause e:
"Partial acceptance of an amendment is not allowed, and will be deemed to be notification of rejection of the amendment".
1. It's the discrepancy. this documents got late shipment.
2. In this case, you can deem the beneficiary did not accept the amendment.

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picant
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Re: Documents Presented By Beneficiary The Latest Date Of Shipment

Post by picant » Sat Nov 18, 2017 11:44 pm

Hi Pals,

IMHO, by presenting documents showing correct dae of shipment, the availment is ok.
Missing l/c no on documents is no reason for refuse. If someone needs l/c no on documents, He
must insert this in goods description and adds that all documents must show complete goods
description.
Ciao

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