Is LC Expired A Discrepancy?

[iLC]

i usually issue a discrepancy notice when a presentation is received under an expired Letter of credit. and i mention "LC expired" as the discrepancy. i was wondering whether it is actually discrepancy or not. any idea?

iLC

[nesarul]

hi dear,
probably CDCS guide provides a guideline on THIS issue:
A document checker will be aware that, technically an expired documentary credit is not a discrepancy but a non existence of documentary credit.TO FACILITATE THE DOCUMENTARY CREDIT AND AS AN ACCOMODATION TO THE PRESENTER,HOWEVER,MOST BANKS TRTEAT 'CREDIT EXPIRED' AS A DISCREPANCY AND ADVICE THE PRESENTER ACCORDINGLY.]
REGARDS
NESAR

[shahriar]

i hate this should, may might words in documentary credit operation. at one side the issuing bank is not oblige to examine a presentation under a expired credit. again it is advised to issued a refusal advise.

regd

shahriar

[callzr]

i hate this should, may might words in documentary credit operation. at one side the issuing bank is not oblige to examine a presentation under a expired credit. again it is advised to issued a refusal advise.

regd

shahriar

Shahriar,

Strange enough the Banks always advises to give no time after last presentation date.

Say for example. 10th is the last date of delivery, and 15 days is given for presentation, and the LC mentions that the date of expiry is 25th (10th + 15 days). Now, in my world everything is done on the eleventh hour. So, if the last date of presentation is on 25th the beneficiary will submit the documents to negotiating bank on 25th. And by the time it reaches to the issuing bank the LC is already expired. Now, my questions are -

1. Why am I always suggested to keep LC expiry date to be as minimum as possible?

2. What if any change is required in the documents? Since the LC is already is expired (actually means that there is NO LC at all) the issuing bank have no other way but to refuse the corrected documents resent to the issuing bank. Say for example only the photocopy of one particular document is sent any no original copy is sent with the documents, like only the photocopy of the packing list or Country of origin is sent but not the original copy...and that is by mistake. No ill intention at all. Now, while a bank can declare discrepancy but since the LC would expire, the whole procedure leaves no space for any correction.

I also do not like the "should may and might" sort of words....and only must...but in this sort of situation what should I do or the bank can come up with an helping option.

Thank you all in advance.

Zia.