Best Trade Solution

Hi!

when a document is refused, the issuing bank generally says that they are holding the document as per article 16... now when we send a replacement of the discrepant document, do we need to create a whole new covering letter. i mean are we presenting the whole set of document or only the replacement document to the issuing bank?

Hi Jabra,

As I understood the issuing bank gave you the notice of refusal. In this case you should present the corrected documents with new cover letter in which you will instruct the issuing bank to replace the documents.
And the issuing bank will have a five banking days following the day of your psentation of corrected documents to determine whether the docs comply with credit terms or not.


regards,
Ozoda

there is no question of presenting the whole set of document. UCP 600 clearly defines presentation as ".... or the document so delivered" which means that only a replacement of the discrepant document would trigger a complying presentation. of course a replacement document should be accompanied by a letter detailing the related letter of credit information.

I agree, that there is no need to present the whole set of documents.
For bank it is easier to check corrected documents only.
If the whole set of documents will be represented (fresh presentation) then the documetns should be re-examined.

You are presenting the replacement for the discrepant docs - so attach covering letter adequate to that docs only
.
Once the documents are rejected, and a replacement documents are sent to the issuing bank , once it get replaced, the whole set will be treated as new presentation from the issuing bank’s point of view. Infact the other document are held at the issuing bank’s counter at the disposal of presenting party. So it must be deemed that a whole new set of documents have presented.