expiry date for negotiation

[jabra]

dear all,

as per UCP, expiry date for the negotiation will be considered as the expiry date of the credit. i receive credit from a particular bank which always quote "document must be negotiated within 15 days from the date of shipment". should i consider the credit expired if it is not negotiated within 15 days from the date of shipment? what will be the case if the beneficiary fails for get a bank which will negotiate the presentation?
please note that the clause is mentioned on swift field 48

[cristiand969]

jabra,
In understanding this point you have to corelate this wording with art.14b especially last phrase.
I feel that the issuing bank tries in an upside down way to express the requirement for presentation at negotiating bank counters within 15 days. What if you, as a bank, decide not to negotiate? Will the presentation be dishonoured by issuing bank because you didn't negotiate so there was no timming to apply here the issuing bank requirements?
I would personally try to approach the issuing bank by a MT799 and say: "We consider ..... to be the latest date for presentation of docs to our counters. If otherwise pls let us know." In this way you are covered.
Pls report here any news in this respect.
brgds
Cristian

[iLC]

i would consider it in simple way. you have 15 days to negotiate. but you have time upto the expiry date of the credit to present it to the issuing bank. while the term negotiate has been used, i believe the intention of the the issuing bank was to mean "present". this is a perfect example of poor knowledge of LC wording.

[jabra]

thanks..

[eximconsulting.net]

"document must be presented within 15 days from the date of shipment".

great replies. respect.

[shoura]

DEAR ALL
IT IS PREFERABLE TO ADD TO YR CLAUSE IN F 48 "document must be presented within 15 days from the date of shipment BUT WITHIN LC VALIDITY"
Ithink it will solve yr problem
thanks
shoura

[shahriar]

i have seen a lots of LC adding this extra line "within the validity of the credit". personally i find no use of t his line since a similar clause is already there in UCP. however i have even heard from mr. collyer that its good to make things clear. humm...