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Dear All,

A document is presented with two original BL only. The covering letter does not include the details of the document that has been sent in the first lot and does mention that a 2nd lot is coming. However we have no clue which documents are included in the 2nd lot. Should we raise a discrepancy?

regd

shahriar

Hi shahriar,

Lets do some brain storming on the issue,

Assume that you receive the remaining originals of docs (which were not presented in the first lot) within presentation period, will the examination period of 5 days start from the date of receipt of the second lot or first one? Since the covering letter does not mention the details of the second set of docs, how can you be sure whether they will constitute a complying presentation? If you do not receive the required docs in the following set or you receive but not complying, and you fail to advice your refusal within 5 banking days as per UCP 16, won't you be precluded from claiming that presentation does not comply?

I don't remember an official opinion concerning a similar situation but if I were in your place, I would feel more safe if I raise discrepancy...

Looking forward to seeing more comments..

regards

does the cover letter says that all terms and condition comply? if no, then you should raise discrepancy without delay. there is no harm. if the document complies otherwise then as soon as the third BL is presented, you can release the payment. as a result everybody will be safe.

You have to wait for the second lot so as the presentation to be complete for reviewing. I've never heard someone to check and advise discrepancies before the presentation to reach in complete form at the issuing bank.
Regards
cristian

Hi cristiand969,
.
From your reply, I understand that 5 days checking period (UCP 14,b) starts from the time of reach of remaining documents. My anxiety was failing to send refusal within this period.
.
thanks & regards

Dear navi,
The 5 bankings days starts the following day from the date of complete presentation at your counters and not from the day partial of presentation received.
regards.
C

dear cristian,

i have a little argument to make based on your comments. in your first comment you said

You have to wait for the second lot so as the presentation to be complete for reviewing. I've never heard someone to check and advise discrepancies before the presentation to reach in complete form at the issuing bank.

in your second comment you said,

The 5 bankings days starts the following day from the date of complete presentation at your counters and not from the day partial of presentation received.
regards.

first of all, ICC says that the first lot should have carry at least one of all the documents so that the issuing bank can examine the presentation. that means in general the first presentation needs to be examine.

2nd, how could one be so sure that the 3rd bl is on its way? what if its not there in the 2nd lot.

3rd, before making any judgment, i will ask whether the LC calls for document in two lots. if not, then i will certainly raise a discrepancy.

4th; in your second post, you said 5 days starts only after the receipt of a complete presentation. that means that first presentation was incomplete and i believe that you will agree that document in two lot and incomplete presentation is not the same thing.


regards

mitra

Dear Mitra,
Your comments are unjustified and at some point illogical.
You said:

jmitra wrote:3rd, before making any judgment, i will ask whether the LC calls for document in two lots. if not, then i will certainly raise a discrepancy.

Can you explain on what basis you can send advice of refusal if the second lot arrives before or on expiry date?
You said:

jmitra wrote:2nd, how could one be so sure that the 3rd bl is on its way? what if its not there in the 2nd lot.

You answered yourself why you have to wait for the arrival of the second set. Because you have to be sure that docs presented are in the number requested by LC.
Sorry I have no time to repsond to the other comments...
regards
Cristian

dear cristian,

what if the 2nd mail arrives after the expiry or never arrives. besides we also need to consider that the LC may be available with the nominated bank. instead of playing the what if game, the best idea is to raise a discrepancy. nominated bank can give two answers -

1. They have received it and is on its way or
2. The beneficiary will submit it

if the beneficiary submit it within time, its ok. if submits after the expiry, raise another discrepancy; late presentation.

regards

mitra