Presentation Without Any Drawing Under A Letter Of Credit

[berry]

Dear Friends,

I was wondering whether it is possible to present a document without making any drawing under a letter of credit. the case may arise in situation where partial shipment is allowed but beneficiary is allowed to make only one drawing under the LC.

[jmitra]

no its not possible. its common sense issue. why would someone present a document without demanding money for it?

regards

mitra

[cristiand969]

Dear Berry,
it is a confusing issue really. While the partial shipment is allowed (which means for each partial shipment will be a separate drawing of course) the LC prohibits more than one drawing.
However, there is only one solution when the presenation is not conditional upon xxx days after shipment (but within the LC validity)
In this case you will have to issue one remittance letter covering all docs resulting from all partial shipments and to claim total amount of documents.
Your solution is not workable unfortunatelly.
regards
Cristian

[shahriar]

i think its not possible to draw for zero value. the goods you have shipped does have a value and thus invoice will not be zero. if you dont submit the invoice, the presentation will be incomplete and therefore discrepant. so there is no way out with such condition.

regd

shahriar

[cristiand969]

Dear Shahriar,
My personal view is that technically may exist a drawing with zero value.
Please have in view the following scenario:
1. Article 60 of ISBP states interalia: ..The invoice may also show a deduction covering advance payment, discount, etc., not stated in the credit.
2. A shipment of 100 cbm timber effected, and invoice shows the following:
100 cbm at USD 500/cbm .... total value ......... USD 50,000
advance payment .........................................USD 30,000
discount ......................................................USD 20,000.
NET VALUE ..................................................USD 0,00.
So technicaly, we have zero value drawing.
However you have a drawing regardless is zero value, and therefore subsequent drawing will be regarded as a discrepancy having in view LC conditions and as such this solution is not workable in the circumstances explained even if second drawing will recover ('imaginative') deduction as shown on the above invoice .
regards
Cristian

[shahriar]

i agree

regd

shahriar