DOCUMENTS PRESENTED AFTER THE EXPIRY (EXPIRY PLACE AT NEGOTI

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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amitopt
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DOCUMENTS PRESENTED AFTER THE EXPIRY (EXPIRY PLACE AT NEGOTI

Post by amitopt » Sat May 24, 2014 8:15 pm

Hi all,

We have received documents under LC on 22/05/2014 whose expiry date was 21/05/2014 at the counter of negotiating bank.

Negotiating bank has sent the documents on 21/05/2014.

As per condition mentioned in the LC, "Documents must be presented to issuing bank before the expiry of LC. If documents presented after the expiry, issuing bank bears no responsibility ".

Please suggest what should be the course of action? are the documents discrepant?
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picant
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Confused

Post by picant » Sat May 24, 2014 11:24 pm

Hi Pal,


the l/c was valid at negotiating bank counters, but a clause limited the further presentation to the issuing bank.
IMHO, the issuing bank worded the l/c in ambigous way and shoul bear the risk of a complying presentation.
I dare say discrepant is not valid.
Other comments appreciated
Ciao
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