CDCS

gegeeee · Post by **gegeeee** » Mon Mar 02, 2015 6:14 pm

Guys in CDCS Test, i have got one case regarding First and Second LOT.

There is written that if LC call's for document in Two Lots, 1st lot needs to have at least an original of each document. Issuing bank would examine on the basis of 1 st lot. date of examination will commence from the date of receiving the first Lot.

Guys, what if LC calls for full set 3/3 B/L and what if second lot will be lost. Lets say that, result will be that 2 originals are presented instead 3/3?

GUBAZ · Post by **GUBAZ** » Mon Mar 02, 2015 11:51 pm

Hello,

In the rules if a credit calls the documents to be prensented in 2 lots, examination should be suspended by issuing bank till the second lot reach to its counters on the condition that the presenting bank had noted that the presentation will be in two lot in its cover letter. If it has lost on courier issuing bank will have no obligation regarding to the examination period and/or obligation of giving an advice of refusal because prensentation not been completed yet at its counters.

felix · Post by **felix** » Tue Mar 03, 2015 11:34 am

Hi

According to Art 35 of UCP 600, if the documents are lost in transit between nominated & issuing bank and there the nominated bank determines that the presentation is compliant then issuing bank is bound to honour it

In this case suppose that the second lot has been lost & the nominated bank notes that the 2nd presentation was compliant then issuing bank will treat the 2nd presentation as compliant also. Further, whether or not the issuing bank honours or not depends on whether the 1st presentation is compliant or not.

Hope that clarifies

Felix

mano · Post by **mano** » Tue Mar 03, 2015 2:24 pm

hello,

im not CDCS candidate,
if you wish i can reply to your case. but
to answer your case, please provide more information respect, place of presentation, who presented documents to the issuing bank, is there is any nominated bank, is the nominated bank certify that the documents are complied and do you need technical opinion respect B/L in releasing goods which may differ from theoretical opinion of missing 1/3 b/l
.
Regards

RAHULCH · Post by **RAHULCH** » Tue Mar 03, 2015 8:57 pm

hi

your query is incomplete..."lost" should need more clarity...

for eg..if the nominated bank after checking docs and sendig to IB..was it lost then..etc

regarding B/L one original B/L is sufficient for release of goods...

plz bring in more clarity

gegeeee · Post by **gegeeee** » Wed Mar 04, 2015 11:59 am

Dear Mano,

Thanks for reply,

please see full test.

Quote:
A LC STATES THAT THE DOCUMENTS TO BE PRESENTED IN TWO LOTS. THE BENEFICIARY PRESENTED FULL SET OF B/L TO THE NOMINATED BANK WHICH FORWARDED THE DOCUMENTS AS PER LC TERMS. THE ISSUING BANK RECEIVED A SET OF DOCUMENT WHICH HAS FIRST AND SECOND B/L. THE COVER LETTER SHOWS THAT THE THIRD ORIGINAL B/L IS TO BE SENT BY 2ND MAIL. WHAT WOULD BE THE POSSIBLE COURSE OF ACTION OF THE ISSUING BANK?

a) THE ISSUING BANK SHOULD HOLD THE DOCUMENT PENDING TILL ARRIVAL OF 2ND MAIL.
b) THE ISSUING BANK SHOULD HONOR THE DOCUMENT UNLESS OTHERWISE DISCREPANT.
d) THE LC IS AVAILABLE WITH NOMINATED BANK AND SINCE BENEFICIARY PRESENTED FULL SET OF DOCUMENTS TO THE NOM BANK, ISSUING BANK SHOULD HONOR.

ANSWER B AND D IS CORRECT.
Unquote:

Thanks

mano · Post by **mano** » Thu Mar 05, 2015 5:11 pm

dear gegeeee,

thanks for your reply the matter now become clear that is required no more technical issues at customs to release the goods.

i will justify the answer by quoting MR. Gary collyer'S reply to this concern related to the application of UCP art. 35
.
''where issuing bank requires documents to be sent in two mails, the nominated bank or presenter should ensure that at least one of each of the required documents in included in the first mailing. the issuing bank would then be required to review the documents based on the documents received in the first mailing on the assumption that further originals or copies of the documents, that will be received in the second mailing, will be the same as those in the first mailing. the issuing bank must make any refusal notice based on the data in the documents of the first mailing. such a refusal will not refer to the absence of the documents that are following in a subsequent mailing''
.
according to this analysis and UCP art.35 and art. 16 that only one advice of refusal will be sent respect one same single presentation (if the documents of 2nd mail are lost including 1/3 b/l the issuing bank can not refuse by sending another advice of refusal when the news of losing documents are known especially if documents were presented by beneficiary as nominated bank who checked and forward complied documents is protected by art.35)
.
respect technical issue if its straight consigned b/l to applicant, the applicant can release goods without the need to deliver any original b/l, but if its negotiable b/l the applicant only need to deliver one original and others will become void)
.
i think this can justify the answer of the question and a good reply to your first query
.
regards

gegeeee · Post by **gegeeee** » Fri Mar 06, 2015 12:50 pm

Thanks a lot.

CDCS

CDCS

SENDING DOCS IN TWO LOTS

Loss of 2nd lot of documents

lost documents

first lot & second lot

Re: presentation.

2 lot

Thanks