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Dear Expert,

May I ask for your opinion on the following:

LC ISSUED BY DEF BANK LTD ON 13FEB10.

NEGOTIATING BANK : GHI BANK LTD.

DATE OF PRESENT OF DOCUMENTS TO ISSUING BANK: OCT 6, 2010
DATE OF ISSUE OF AMENDMENT OCT 6, 2010
DATE OF RECEIPT OF AMENDMENT BY THE BENEFICIARY ON OCT 10,2010

CONTENT OF AMENDMENT :
DOCUMENTS SHOWING DOCUMENTARY CREDIT NUMBER, DOCUMENTARY CREDIT ISSUING DATE AND NAME OF EXPORTER DIFFERENT FROM THIS DOCUMENTARY CREDIT ARE ACCEPTABLE.

L/C DOCUMENTS REQUIRED:
1. CERT. OF ORIGIN ISSUED BY CHAMBER OF COMMERCE.
2. FULL SET CLEAN ON BOARD B/L MADE OUT TO ORDER OF SHIPPER AND ENDORSED IN BLANK.


DISCREPANCY CITED BY ISSUING BANK:
1. IN CERT OF ORIGIN CONSIGNEE MENTIONS TO ORDER OF ABC BANK LTD. AND LC NO. 12345 DATED 10JAN10 INSTEAD OF MENTIONS AS 67890 DATED 13FEB10 AND EXPORTEER NAME DIFFERS FROM DC.

I TREAT THE DISCREPANCY IS INVALID SINCE THE AMENDMENT IS APPLIED EVEN THOUGH IT IS RECEIVED LATER THAN THE DATE OF PRESENT OF DOCUMENTS BY THE NEGOTIATING BANK. SINCE AMENDMENT IS EFFECTIVE AT THE DATE OF ISSUE BY THE ISSUING BANK.

PLEASE COMMENT WHETHER IT IS CORRECT OR NOT.


For your reference paragraph 185 of ISBP 2007 is as under:
“The certificate of origin may show the consignor or exporter as a party other than the beneficiary of the credit or the shipper on the transport document.”



UCP600 Article 10

b. An issuing bank is irrevocably bound by an amendment as of the time it issues the amendment.

c. The terms and conditions of the original credit (or a credit incorporating previously accepted amendments) will remain in force for the beneficiary until the beneficiary communicates its acceptance of the amendment to the bank that advised such amendment. The beneficiary should give notification of acceptance or rejection of an amendment. If the beneficiary fails to give such
notification, a presentation that complies with the credit and to any not yet accepted amendment will be deemed to be notification of acceptance by the beneficiary of such amendment. As of that moment the credit will be amended.


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THANK YOU FOR YOUR ASSISTANCE.

REGARDS,
UCP 800

Hi,

I just wondering, how could you as the negotiating bank not take that as discrepancy when you read the dox? you have not received the amendment right?
"DATE OF PRESENT OF DOCUMENTS TO ISSUING BANK: OCT 6, 2010" in here is date of dispatch? or date of issuing bank received it?
if it is date of dispatch the dox than it should be no discrept, as you said, it is take into effective at the time amendment is issued (as per bencon)
but if it is the date of dox received than it is discrept, meaning that the dox are process and send by you before the amendment is released

Even the documents have been received on 06.10.2010 the checking period starts with 'the next following days after receipt of documents' presumably 07.10.2010. Even the issuing bank has checked the documents on 06 oct 2010 before sending the amendment, it is the content of amendment which have cured the discrepancies automatically and I perceive that as a waiver from applicant AND issuing bank.
I would also like to add that there is an ICC opinion stating that quoting wrong L/C number in a document is not a reason for refusal since the no. of LC is for the purpose of identification to which credit documents refer to. Since the issuing bank make a refusal notice they have identified such LC. On the other hand L/C no. is not a critical information for Certificate of origin.
However, there is an [immaterial] discrepancy on consignee information. See art.184 of ISBP.
The certificate of origin should have shown either 'to order', applicant, or 'OTHER PARTY NAMED THEREIN' but not 'to the order of ABC' which is different from issuing 'DEF' and probably not a party named in LC.

hi all

i revise my opinion, it is not discrepancy at all, since the amendment is already issued by issuing bank.
the presentation of docs should be assumed as acceptance of the amendment

sorry all