We receive l/cs indicating expiry date as 1/08/2008 and latest shipment date 1/7/2008 however the presentation period is stated as 15 days”
I deem the following terms inconsistent with each other.
your view................
Expiry - Lastest Shipment Date Is Less Than Presentation Per
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Md.zakir Hossen
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leechiankoh
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Re: Expiry and last date of Shipment
Hi,
The terms are in good order.
A credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation.
A presentation must be made on or before the expiry date.
Period for presentation is a period given to beneficiary to prepare all documents as required to be presented to bank but within the validity of the credit.
An example here.
Date of expiry : 22-Aug-2008
Latest date of shipment : 14-Aug-2008
Period for presentation : 21 days after the date of shipment but within the validity of the credit
Assumming shipment shipped on 14-Aug-2008. However, beneficiary must complete all document required and present to bank on or before 22-Aug-2008, even the period of presentation allowed in the credit is 21 days after the date of shipment. This is because all documents required must be presented to bank within the validity of the credit.
In this case, beneficiary must present the documents within 8 days from the date of shipment.
Regards,
Leechian
The terms are in good order.
A credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation.
A presentation must be made on or before the expiry date.
Period for presentation is a period given to beneficiary to prepare all documents as required to be presented to bank but within the validity of the credit.
An example here.
Date of expiry : 22-Aug-2008
Latest date of shipment : 14-Aug-2008
Period for presentation : 21 days after the date of shipment but within the validity of the credit
Assumming shipment shipped on 14-Aug-2008. However, beneficiary must complete all document required and present to bank on or before 22-Aug-2008, even the period of presentation allowed in the credit is 21 days after the date of shipment. This is because all documents required must be presented to bank within the validity of the credit.
In this case, beneficiary must present the documents within 8 days from the date of shipment.
Regards,
Leechian
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cristiand969
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Re: Expiry and last date of Shipment
Hi all,
Notwitstanding the correct explanations for expiry date described by leechiankoh the LC in question is incorrectly issued. Even if the beneficiary present document on or before expiry date to the designated place, he will have late shipment due to shoter time imposed in period of presentiation (I mainly refer to the period to the gap between 16.07 - 01.08.2008) Therefore the beneficiary cannot make use of the expiry date of credit. I would personally seek for clarification as to wether stale documents are acceptable.
The example given by you is somehow opposite to the main question.
regards
Cristian
Notwitstanding the correct explanations for expiry date described by leechiankoh the LC in question is incorrectly issued. Even if the beneficiary present document on or before expiry date to the designated place, he will have late shipment due to shoter time imposed in period of presentiation (I mainly refer to the period to the gap between 16.07 - 01.08.2008) Therefore the beneficiary cannot make use of the expiry date of credit. I would personally seek for clarification as to wether stale documents are acceptable.
The example given by you is somehow opposite to the main question.
regards
Cristian
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nesarul
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Re: Expiry and last date of Shipment
Dear zakir vai,
according to your posting:
last date of shipment:01.07.2008
expiry date : 01.08.08
document must be presented within 15 days from the date of shipment.
whether is it in order or not?
my thinking:
according to sub article 6(d)(i):
expiry date = last date of presentation.
so under normal sinerio, generally the expiry date of a credit has been set in conjunction with the allowable time frame. in your example expiry date should be 15.07.08...... but still your credit has got some other explanation which are as follows:
1. beneficiary must have to present the document to the available bank within 15 days from the date of shipment.
2. still there may be a situation, where the beneficiary can utilize the expiry date i.e 01.08.08 for settlement, such as:
suppose .
shipment date is 01.07.08
the beneficiary present the document direct to the issuing bank on 15.07.08 i.e last date of presentation.
after examine the document, the issuing bank raised discrepancies on commercial invoice and packing list.
according to sub article 14(c)
........IN ANY EVENT[EMPHASIS ADDED] NOT LATER THAN EXPIRY DATE OF THE CREDIT.
benefciary can able to represent the corrected document within 01.08.08 for complying presentation.
thanks
nesar
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according to your posting:
last date of shipment:01.07.2008
expiry date : 01.08.08
document must be presented within 15 days from the date of shipment.
whether is it in order or not?
my thinking:
according to sub article 6(d)(i):
expiry date = last date of presentation.
so under normal sinerio, generally the expiry date of a credit has been set in conjunction with the allowable time frame. in your example expiry date should be 15.07.08...... but still your credit has got some other explanation which are as follows:
1. beneficiary must have to present the document to the available bank within 15 days from the date of shipment.
2. still there may be a situation, where the beneficiary can utilize the expiry date i.e 01.08.08 for settlement, such as:
suppose .
shipment date is 01.07.08
the beneficiary present the document direct to the issuing bank on 15.07.08 i.e last date of presentation.
after examine the document, the issuing bank raised discrepancies on commercial invoice and packing list.
according to sub article 14(c)
........IN ANY EVENT[EMPHASIS ADDED] NOT LATER THAN EXPIRY DATE OF THE CREDIT.
benefciary can able to represent the corrected document within 01.08.08 for complying presentation.
thanks
nesar
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iLC
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Expiry date and last date of Shipment
excellent work dear nesarul!!
iLC
iLC
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cristiand969
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Re: Expiry and last date of Shipment
Dear Nesarul,
I'm afraid I have to say that your last answer speculates the situation and have a missing point.
1. If period of presentation is 21 days no one can stop beneficiary to present document to the issuing bank earlier (let's say 10 days) if he has some doubts about compliance and wish to be on the safe side regarding the period of presentation.
2. Your assertion of documents replacement must follow the period of presentation of a complying set of documents. If for one reason or another an invoice is replaced it means (together with the rest of docs formerly presented) a representation of documents which becomes a late presentation on 01.08.2008. A complying presentation does not mean splitting up set of documents in 2 presentations (i.e establishing that B/L and cert of origin is compliant on 15.07.08 and Invoice is compliant on 01.08.08) presentation means full set of docs required
I'm afraid I have to say that your last answer speculates the situation and have a missing point.
1. If period of presentation is 21 days no one can stop beneficiary to present document to the issuing bank earlier (let's say 10 days) if he has some doubts about compliance and wish to be on the safe side regarding the period of presentation.
2. Your assertion of documents replacement must follow the period of presentation of a complying set of documents. If for one reason or another an invoice is replaced it means (together with the rest of docs formerly presented) a representation of documents which becomes a late presentation on 01.08.2008. A complying presentation does not mean splitting up set of documents in 2 presentations (i.e establishing that B/L and cert of origin is compliant on 15.07.08 and Invoice is compliant on 01.08.08) presentation means full set of docs required
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jmitra
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Re: Expiry and last date of Shipment
great pick cristiand!!
i fully agree with you. the "Vacuum" days cannot be used for rectifying the error and resubmitting the document. any comment iLC?
i fully agree with you. the "Vacuum" days cannot be used for rectifying the error and resubmitting the document. any comment iLC?
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nesarul
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Re: Expiry and last date of Shipment
Dear Jmitra,
reference may kindly be made on ICC official opinion R-328 1998/99.
thanks
nesar
reference may kindly be made on ICC official opinion R-328 1998/99.
thanks
nesar
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shahriar
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Re: Expiry and last date of Shipment
humm...
if i am not making a mistake, the debate is on the issue -
the opinion nesar quoted
the opinion is a good one but im not sure whether it is supporting it or opposing you. to me the corrected document to be resubmitted within the presentation period that is 15th.
regd
shahriar
if i am not making a mistake, the debate is on the issue -
2. still there may be a situation, where the beneficiary can utilize the expiry date i.e 01.08.08 for settlement, such as:
suppose .
shipment date is 01.07.08
the beneficiary present the document direct to the issuing bank on 15.07.08 i.e last date of presentation. ..the issuing bank raised discrepancies ...
according to sub article 14(c)
........IN ANY EVENT[EMPHASIS ADDED] NOT LATER THAN EXPIRY DATE OF THE CREDIT.
benefciary can able to represent the corrected document within 01.08.08 for complying presentation.
the opinion nesar quoted
Sub-Article 14(d)(i) states: "If the Issuing Bank... , it must give notice to that effect by telecommunication or, if that is not possible, by other expeditious means...Such notice shall be given to the bank from which it received the documents, or to the Beneficiary, if it received the documents directly from him."
This principle applies whether the documents are a first presentation or a presentation on the basis of corrected documents. The only "new" discrepancies that the issuing bank can identify would relate to the form or content of the re-presented documents, provided that the "new" documents were presented within the presentation period and the expiration date of the letter of credit.
the opinion is a good one but im not sure whether it is supporting it or opposing you. to me the corrected document to be resubmitted within the presentation period that is 15th.
regd
shahriar
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nesarul
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Re: Expiry and last date of Shipment
Dear Shahriar,
beneficiary has the right to submit the corrected presentation [if any]within LAST DATE OF PRESENTATION AND/OR EXPIRY DATE OF THE CREDIT.
PLS FIND TWO POSSIBLE REFERENCES:
1. FREQUENTLY ASKED QUESTION, VOL 1 QUESTION 16.7
2. DC INSIGHT MEGAZINE, Volume 1 No 3 Summer 1995 section quaries and responses, heading Part 1: Replacing discrepant documents.
WAITING FOR COMMENTS
REGARDS
NESAR
beneficiary has the right to submit the corrected presentation [if any]within LAST DATE OF PRESENTATION AND/OR EXPIRY DATE OF THE CREDIT.
PLS FIND TWO POSSIBLE REFERENCES:
1. FREQUENTLY ASKED QUESTION, VOL 1 QUESTION 16.7
2. DC INSIGHT MEGAZINE, Volume 1 No 3 Summer 1995 section quaries and responses, heading Part 1: Replacing discrepant documents.
WAITING FOR COMMENTS
REGARDS
NESAR
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shahriar
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Re: Expiry and last date of Shipment
dear nesar,
sorry i dont have the DC Insight volume you refer in my collection. though i guess its a about ICC opinion. however i have checked the FAQ Volume 1. may be i have not been able to clear my position to you. FAQ clearly says that the issuing bank cannot raise new discrepancies from the documents that have been submitted earlier. i fully agree. issuing bank should have been able to pick them at the first examination. but our case is bit different. we not taking about a documentary discrepancy. late presentation is something that is created due to timing. the issuing bank cant raise this discrepancy when the document was first presented on 15th.
i always know you as very cautious about usages of words. have you missed that the ICC opinion you refer specially used the term "within the presentation period" along with the expiry date?
regd
shahriar
sorry i dont have the DC Insight volume you refer in my collection. though i guess its a about ICC opinion. however i have checked the FAQ Volume 1. may be i have not been able to clear my position to you. FAQ clearly says that the issuing bank cannot raise new discrepancies from the documents that have been submitted earlier. i fully agree. issuing bank should have been able to pick them at the first examination. but our case is bit different. we not taking about a documentary discrepancy. late presentation is something that is created due to timing. the issuing bank cant raise this discrepancy when the document was first presented on 15th.
i always know you as very cautious about usages of words. have you missed that the ICC opinion you refer specially used the term "within the presentation period" along with the expiry date?
regd
shahriar
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iLC
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Re: Expiry and last date of Shipment
nice to see that some one is looking for my comment 
i am not sure what to say. the point raised are not fully baseless. may be this is ok for cases were there is no so called "vacuum" days. but when there is a confirmed gap between the last date of presentation and the expiry date, what could be the possible reason. i think i will give the benefit of doubt to the beneficiary. there are many reasons for what the issuing bank might have used such gap.some says this is for negotiation period. i never agree. negotiation is possible even after the expiry of the credit.
one more think, i will only call this is a late presentation when the BL is found discrepant and have been replaced.
i want comments from others
iLC
i am not sure what to say. the point raised are not fully baseless. may be this is ok for cases were there is no so called "vacuum" days. but when there is a confirmed gap between the last date of presentation and the expiry date, what could be the possible reason. i think i will give the benefit of doubt to the beneficiary. there are many reasons for what the issuing bank might have used such gap.some says this is for negotiation period. i never agree. negotiation is possible even after the expiry of the credit.
one more think, i will only call this is a late presentation when the BL is found discrepant and have been replaced.
i want comments from others
iLC
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shahriar
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Re: Expiry and last date of Shipment
dear nesar,
i will try one more time to make it clear. from the very beginning. at first you put your emphasis on "any event". i guess you are saying that UCP 600 14C talks about few occasion where the latest date of presentation dont apply. correct? what could be the possible scenarios?
1. copy of transport document presented. 14c doesnt apply
2. Swift Field 48 is blank. that means shipment can be made within any day till expiry. remember 14c is still in action. so if the shipment is made a week before the expiry, 14c says document must be presented within 21 days from that date of shipment. but we have the expiry date before than. this is the situation where your "any event" comes in action. i also think you should consider "but in any event" rather than simple "any event". to me this but is putting a condition on the previous line of the article. not adding a new scenario in the article.
hope that will help.
regd
shahriar
i will try one more time to make it clear. from the very beginning. at first you put your emphasis on "any event". i guess you are saying that UCP 600 14C talks about few occasion where the latest date of presentation dont apply. correct? what could be the possible scenarios?
1. copy of transport document presented. 14c doesnt apply
2. Swift Field 48 is blank. that means shipment can be made within any day till expiry. remember 14c is still in action. so if the shipment is made a week before the expiry, 14c says document must be presented within 21 days from that date of shipment. but we have the expiry date before than. this is the situation where your "any event" comes in action. i also think you should consider "but in any event" rather than simple "any event". to me this but is putting a condition on the previous line of the article. not adding a new scenario in the article.
hope that will help.
regd
shahriar