Best Trade Solution

Dear expert,

Notice of completeness of an electronic presentation is presented on 15FebXXXX.

The nominated bank found on 18FebXXXX that one electronic record presented is corrupted and requests the presenter to re-present it.
The presenter re-presents the requested electronic record on 20FebXXXX.

What is the latest date by which the nominated bank should determine if the presentation is complying:
* 23FebXXXX
* 25FebXXX


Regards
H Jallouli

the examination should be suspend from 18-20, and resume on 21 Feb and last 3 more days(2 days already spent 16 and 17 ). so the last day should be 23 Feb.

Hi iam90,

E2 stipulates that a credit subject to the eUCP is also subject to the UCP without express information of the UCP.
and the sub-article14(b) of UCP stipulates than a Nominated Bank acting on its nomination, a confirming bank, if any, and the issuing bank have maximum of five banking days following the days of presentation to determine if a presentation is complying.
So if an electronic record was found corrupted thus the nominated bank may request the presenter to re-present it. Once the presenter re-presents the electronic record, the nominated bank must treat such presentation as a new presentation and have a maximum of five banking date following the day of the new presentation.

Any comments
Regards
H Jallouli

in case of there is no specific requirements in ucp, the ecup should previal.
the corruption of electronic record is only described in ecup. so you should refer to it.

We had a similar case under a standby, which provided for fax presentation. The demand was presented on the expiry date. The fax was unreadable in parts and difficult to examine as certain key data was illegible.

In this case beneficiary relaxed the demand and other required documents.

My question is, can the beneficiary refuse to re fax as he has proof of transmission?

Regards.

Hi westley,

A document presented by fax does not constitute an electronic record. It's a document presented by telecommunation which is equivalent to a paper document. We should refer to sub article e3(a)(iii) of eUCP version 1.1 which specify that an electronic presentation must be sent to an electronic address. A fax is not an electronic address. If document presented by fax is unreadable, the nominated bank, acting on its nomination, the confirming bank, if any, and the issuing bank must apply the sub-article 14(a) of UCP 600. So the document does not constitute a complying presentation.

Any comments
H Jallouli
Regards

Dear westley,

I totally agree with Jallouli that a document presented by fax does not constitute an electronic record. Actually it is a COPY of document without original signature. Regarding to
your case, as the presentation by fax was made on expiry date, I suppose the BENE should make re-presentation on the same day in order to be a compliant presentation, otherwise the re-presentation should be made after expiry of L/C and be non-compliant.

Regards,

Allan

Thanks Allan,

Agreed that the beneficiary must make a representation on the same day to avoid the LC being expired and that is what they did.

However, our concern is that, can the beneficiary refuse to do so, as he has the fax transmission confirmation.

Westley

You should refer to e11 b. i. eUCP 1.1. IMHO, 18 Feb should be counted as one day for examination of nominated bank. Hence, correct answer should be fall on 22 Feb.