Transferable LC; presentation period

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
Zubair
Posts: 1
Joined: Wed Jan 31, 2018 1:47 am
First Name: Zubair
Last Name: Piracha
Organization: IPC
Filter: Two Plus Two =: 4
Location: UAE

Transferable LC; presentation period

Post by Zubair » Wed Jan 31, 2018 2:05 am

Hello Colleagues,

There is one transferable lc.
Expiry place is Hong kong.
Issuing bank and transferring bank is in China. Both are same banks, but branches are different only.
Presentation period: 21 days from shipment date

We are shipper/supplier of material. We presented the documents to the chinese bank within 15 days after ship date.
As per ucp: bank has 5 working days to give response for acceptance or rejection

Questions:
Which bank has to give response within 5 working days? Transferring bank or issuing bank?

If transferring bank delay the presentation at issuing bank, will it effect on supplier's acceptance? Such as transferring bank present the documents to issuing bank after 21 days. And issuing bank raise discrepancy for late presentation. Transferring bank can relay this rejection to us or to nominated bank? Or transferring bank received complied documents and they are bound to give acceptance within 5 working days after its presentation?

Pls help.

Post Reply