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Lc condition for presentation of document is as follows:
"documents to be presented wihtin 21 days of shipment but within the validity of the credit"
Documents have been presented after 21 days of shipment but within lc expiry date. Will this be treated as late presentation? Pls. Clarify.......

Hello
I would class this as late presentation.
Thanks jackie

LATE PRESENTATION.
If the presentation is made after the expiry of lc,it will be refused for the reason "lc expired."

Dear Jackie,

Question realtes to situation where documents are presented within LC expiry date but after presentation period stated in LC. Please advice whether same will be treated as late presentation or not.

if we present document after period for presentation that is called late presentation. if LC allows stale documents acceptable your presentation is not considered as late presentation

stale: 21 days after shipment date to on or before lc expiry date documents can be presented.

all comments welcome

Presentation period or Expiry of LC whichever is earlier to consider for last date of presentation.

So presentation is discrepant

hello

Of course you may have late presentation but within L/C validity.

For instance,
LDS 25.2.10
PP 21 days
ED 18.3.10

If B.Lading shows shipment date as 19.2.10 and documents are presented on 17.3.10, this is within the validity of the letter of credit but beyond the 21 days presentation period.

Another point to remember is that unless stated, shipment may be effected prior to the issuance of the letter of credit.

I hope this explains better.

Thanks Jackie

Hello All,

iam a new joinee to this group.

we are a Trading company and i had presented documents to the Bank , the LC is for Heavy Naphta and details below

LC expired : 15 Sep 2013


LC Required : 1.Invoice 2. Cert of Quantity 3. B/L 4 : Cert of QUality

5. LOI (if docs no.2 to 4 not submitted, LOI is applied)

Period of Presentation : within 21 days after B/L date

Now we have presented docs no.1 invoice and no. 5 LOI

and invoice and LOI showing B/L date 31 July 2013 and Invoice dated 28 Aug 2013

can the Bank quote a late presentatoin dicrepancy or not?

My bank did quote a Late Presentation. For which i refuted saying that the Invoice cannot be considered as transport docs only the B/L can be or related transport documents.

Kindly advise if the explanation was correct in relation to the Discrepancy quoted.

Regards,
Krish

Hi Krish,

You should post this as new question in the thread.

Firstly ,LC is not perfectly drafted.When the issuing bank gives a option to present LOI instead of B/L they should also give a clarity of presentation days how it will be applied.
This would have solved the problem.

However now having presented I would read this in favour of beneficiary as B/L is not presented, presentation details cannot be calculated as other documents are not considered as transport document and one should not go with what other documents state.Beneficiary should be able to present the documents till expiry date.

Others comments appreciated.

Regards
Hari

As Hari indicates, unless the LC has explicitly stated that all documents including (in the absence of a B/l) LoI must be presented within 21 days of shipment and that the date of shipment is to be detailed either on the invoice or the LoI, there is no way that the bank can determine whether "late presentation" has occurred. So how could they raise a discrepancy?

This will be not a discrepancy if such clause ''stale document is acceptable'' in the credit. Stale documents are documents those have been presented after 21 days of shipment but within expiry date of the LC. If such clause is not stated in the credit then is a discrepancy and Issuing Bank may ask for a waiver to the applicant.

If LC calls for presentation 21 days after shipment date but within the validity of the LC then in case of a shipment on 1st May, 2017 for an LC with expiry 30th May, 2017 which of the following presentation is complied :
1. presentation after 22nd May, 2017 or after but within 30th May, 2017??
2. presentation between 1st to 21st May, 2017??