Application Of UCP600 Article 29(a): Extension Of Expiry

[hassan]

all freinds
I have a little doubt about following case and I want be comletely sure about it.
in an L/C we have:
- expiry date :30 may 2008
- goods shipped on : 01 may 2008
- last presentation date according to 14(c) is :22may 2008 on which
and even on 23 may 2008 the bank was closed for reasons
other than . . . article 36
- may the benef. present docs. on 24 may 2008 (according to Art.
29 (a))?

[nesarul]

Dear Hasan Sir,
hope you are fine. I am curious to know whether you understand the meaning if "agreeing to advance fund" or not.
.
before going into my posting, i want to make it clear that sub article 14(c) is applicable only when:
1. the credit is not stipulated last date of presentation oif document.
2. credit must call for original transport document as mentioned in 19-25 of UCP 600.
.
here i assume that credit is not stipulated last date of presentation, and credit required presentation of Bill of lading as per article 20. consequently default rule mentioned in sub article 14(c) is automatically applicable.
now if you look into sub article 14(c)"........not later than 21 CALANDER DAYS[EMPHASIS ADDED] after the date of shipment.
.
So calander day can not be extended for due to non-banking day.
.
so beneficiary can not make presentation after the 22nd may, 2008.

.eagerly awaiting for other members (including you) view.

nesar

[shahriar]

dear nesar,

nice logic and tough also. but my view is article 29a says

a. If the expiry date of a credit or the last day for presentation falls on a day when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36, the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day.

as u see, the article is silent about the methods of calculation; banking / calender days.

shahriar

[nesarul]

Dear Shariar,
If you stipulate last date of presentation such as 20.03.08 in the credit, then close on 20.03.08 [other than article 36] will automatically extend to the next banking day.
but if you remain silent on the credit regarding presentation of document, then you have only 21 calander day after the date of shipment as mentioned in sub article 14(c)
i think its now clear, isn't it.
thnaks
nesar

[shahriar]

--

[shahriar]

dear nesar,

does 29a says that "last day" means the last day if it is not mentioned as last day in the lc

lets discuss again.

a. If the expiry date of a credit or the last day for presentation falls on a day when the bank to which presentation is to be made is closed for reasons other than those referred to in article 36, the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day.

consider that last day and expiry day is related by or here. that means its applicable for both expiry date and last date. now expiry day is the last day of presentation unless there are some other conditions active like bl must be presented within 15 days. that means any day can be a day of presentation and lc date + 15 days is the first possible last day of presentation. therefore there is only one specific day as "last day of presentation". if i take ur statement as correct, then 29a applies to expiry date only

to me 29a is applicable with any case. but im sure u have support for your statement. now please tell me that

shahriar

[nesarul]

Dear shahriar.
if you look into sub article 14(c) then you see " .....not later than 21 CALANDER DAY{EMPHASIS ADDED]......."
HOW CAN YOU RECONCILE THE ABOVE CALANDER DAY WITH UR STATEMENT. as we know calander day will never extended.

HERE I TRY TO RECONCILE BOTH ISSUED MENTIONED IN SUB ARTICLE 14(c) and sub article 29(a). if you look into my post, i explained in which circumstances the extened banking day is applicable and not.

this is all about my logic come from my thinking, may be my thought goes wrong way.
thnaks
nesar

[shahriar]

ok nesar,

if i issue a lc with a expiry date which falls on day, will u apply 29a?

shahriar

[nesarul]

Dear Shahriar,
article 14(c) is talking about default presentation day(21 calander day) from the date of shipment where the credit is silent regarding it and credit requires original transport documentas mentioned from
.
what i am trying to emphasis that under above circumstances only, article 29(a) may not be applicable.
.
nesar

[hassan]

Dear Nesarul and Shahriar,
Thank you for your useful discussions. as you see, it seems there are a little ambiguity in the Art. 29(a) and it must be clear wether or not it includes two possibly dates.
1- the last day for presentation i/e only 21 days after shipment
date.
2- the expiry date of l/c (which at same time is last day for
presentation)
considering the phrase "the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day" it seems 29(a) refers to two dates but i am not sure and i actually need to your good clarificatin.

meanwhile Dear nesarul, yes i read your valuable examples and explanations and i understand that in term "by negotiation" :
1- the nominated bank may purchase complied docs / draft from benef. and pay its value to him/her at the same time (advance) before receiving its equivalent from issuing bank.or
2- the nominated bank may purchase complied docs / draft from benef.and based on aggriment with benf pay docs value to him/her later on, even on the maturity date of docs(agreeing to advance) but still befor receiving its equivalent from issuing bank.
am i undestand properly? otherwise please help me.

[nesarul]

Dear Zakir Vai,
what I believe that devil always lies on deep thinking which impel us to realize the more you know the more you not know. I am studying on this issue. if i convinced with my study I pomise to post my final thought. Till than sorry for that.
thanks
nesar

[nesarul]

Dear Hasan Vai,
what I think that Negotiation is possible only when credit is available by negotiation. Do you agree with me????
thanks
nesar