Best Trade Solution

Dear all,
I would like to post some comments regarding a query existing in within section 'OUR OPINIONS'
Subject: Installment drawing or shipment
Question Posted by: Nesarul
Posted On: Fri, May 23, 2008 at 8:17 PM
Query:
Will the subsequent drawing ceases to be available?

Answer:
As per existing rule, YES. But I feel this would be injustice. I haven't found any official opinion of ICC in light of such query.

My comments:
Art. 32 of UCP600 states: Instalment Drawings or Shipments
If a drawing or shipment by instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available for that and any subsequent instalment.
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My personal view is that any subsequent drawing cannot cease because the discrepancy raised by issuing bank (late presentation) in not linked to 'late shipment' (shipment of goods as per schedule was respected). Therefore the issuing bank cannot make use of art. 32 of UCP 600.
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I look forward to seeing other opinions
regards
Cristian

Dear,
an article on above query has already been published in this forum and LC views.
nesar

in my opinion further shipment under the lc is not acceptable.

if a drawing or shipment by installments within given period is stipulated in the credit and any installment is not drawn or shipped with in the period allowed for that installment, the credit ceases to be available for that and any subsequent installment.

if you delete the word shipment then

if a drawing by installments within given period is stipulated in the credit and any installment is not drawn with in the period allowed for that installment, the credit ceases to be available for that and any subsequent installment.

Drawing means presentation for payments. A shipment with discrepant documents is equivalent to untimely or no shipment at all, since the goods cannot be accepted. therefore any discrepancy in the document including a late presentation will siege the availability of the credit.

Dear mitra,
I guess you have made a confusion and you cannot substract a word/wording from an article just to fit in your answer. You have deleted the most important word which draw a line between a complying presentation and a possible discrepant one.
The requirement in the credit was SHIPMENT BY INSTALMENTS and periods of shipment have been given and they were respected.
and
Dear nesar
I feel that lcview treated a different scenario regarding instalments.
best regards
Cristian