Late Presentation??

[maximundo]

Hi All,

I'm in a bit of a tight spot on a big LC. There were some document requirements of the LC that took longer than expected to obtain from the shipping company (signed chamber of commerce document, etc). The LC stipulated that the "DOCUMENTS MUST BE PRESENTED WITHIN 20 DAYS OF THE BILL OF LADING." Due to the delays, they were presented on the 21st day after shipping.

We have submitted the LC on an approval basis. We should know whether the consignee waives the discrepancies within 2 weeks. The thing is, the sea freight delivery is due to be delivered in 2.5-3 weeks from today. So we should know whether the customer waives the discrepancies before the goods are delivered.

We have a good relationship with the customer, but they are a first time buyer of ours, so I need to protect our company. Since the goods are still en route via sea freight, coupled with the fact that the customer desperately needs the materials for a project they are working on, we still have some leverage.

Since the documents will have a "Late Presentation" discrepancy, I think our only saving grace would be that we could deny final delivery of the goods if the customer doesn't waive the discrepancies? Does anyone have any other ideas?

I am just trying to look for some protection on this shipment. If anyone can help out and provide their thoughts on the matter, I would be very thankful. Thanks in advance everyone.

-Max

[berry]

i agree with your line of thought. late presentation is an incurabale discrepancy. you didnt mention who is the consignee of the cargo. unless its to the order of the customer and is to the to the order of the issuing bank, you are quite safe.

in similar cases, i would suggest to ask the nominated bank to souhgt for waiver before sending the document. in that way you can avoid lots of potential problem.

[Ahmedshawky]

Dear All,

actually in such cases providing that the BOL is to the order of the applicant's bank there is a minimum risk that you won get your payment timely cause as you mentioned the applicant need the merchandise beside your goods wont be released from customs with out the correspondent endorsement to the applicant

But for further action to rest assure that every thing is in order and since you mentioned you have a good relation with the applicants you can contact them from now and persuade them to send a formal letter to there correspondent including there waiver of the discrepancy and accepting the documents and faxing to you such a formal letter with there bank's receving stamp even some applicants who are seeking long term goodrelations with there suppliers some times send a pre agreement on whatever discrepancies to be found at the shipping documents rare cases thou but it facilitate the negotiations much

best regards

A.Shawky
Trade finance senior

[loankim]

Hi Max,

As to yr pressure action as denying final delivery of goods, i dont think i have more than to share. But with the discrepancy " late presentation" -only for 01 day, umm...it makes me think abt this ( not so differ from Berry's thought )
If you submitted the LC on approval discrepancy and the nominated bank decided not to negotiate then you try to ask the support from them.
Because there is no time limit within the UCP that how long a nominated bank have to dispose of document. The issuing bank has to honour a complying presentation notwithstanding the period that the nominated bank may have taken to send the documents.
It seems so easy than others , BUT thats a bad practice
Anyway, i dont think the indication od period for presentation is so clear .
How should i understand " THE BILL OF LADING " while there will have 2 ones on B/L: issuing date of B/L and on-board date ( shipment day ) ?
If the issuing date is later than on-board date ( even though 01 day ) then it is obviously that you'll escape from this issue.

Other comments appreciated !!

Regards,

[Ljo]

Hi Max
If you have give all the original b/l's to the bank then I dont see a need to worry as yor buyer cannot clear goods without an Original B/L and the Issuign bank will not release documents to the buyer if they do not accept the discrepancy.
Ljo

[lukman.hakim]

Hi max
i wondering, it just 1 day late only, do you also have a close relationship with your bank, why dont you ask your bank to state in their Cover letter certifying that the docs are received in their counter in the period of presentation, it would eliminate the discrepancy since the issuing bank will have no right to said it is late presented.

and also I do agree with Ljo, if the LC call all BOL must be presented thru Bank than you should not worry, applicant will have to pay before they able to do good clearence, but yes there is a big opportunity if by late presentaion although only 1 day late your buyer become dissapointed and would not pay and refuse your goods. i do not know what is your product, but if it is does not have a short expiry date, you can recall back to your storage and resell it to other buyer.