Wrong Maturity Dates Advised By Bangladeshi Local Banks

[sapeerwani]

Hi,

I would like to seek help from seniors.
In the past we have faced too many issues in acceptances and payments delays against the B2B L/cs issued by Bangladeshi local banks and recently two local banks have advised wrong maturity dates but when our bank contacted them then they said due to discrepant documents maturity date was calculated from the date of acceptance.

Below details of one of the cases for your better understanding.
Payment term 120 days from the date of B/L.
Shipment date 15 Nov 2014
Documents delivered to L/c issuing bank 30 Nov 2014
Discrepancy message received on 02 Dec 2014
Shipment released on 04 Dec 2014
Maturity date 13 May 2015 advised by L/c issuing bank on 13 Jan 2015

As per my understanding, the maturity date should be calculated from the date of acceptance which is one or two days before the cargo released date (04 Dec 2014) however, the L/c issuing bank had delayed in advising maturity date and took more than 40 days after the goods released date.

My question is what should be the correct maturity date? is there any rule of Central Bank of Bangladesh to hold the maturity date for long time ? how to redress this issue when L/c issuing banks are not serious in advising maturity date on or before the cargo release date in case of discrepant documents?

In addition, we never faced any issue like above against the B2B L/c issued from foreign banks in Bangladesh like Citi, SCB etc..

Thanks for your kind help.

BR
Saleem

[felix]

Hi Saleem

The maturity date needs to be calculated from the date of the B/L as that is the condition mentioned in the LC & not from acceptance date. Maturity date needs to be calculated from the date of acceptance only when the LC states drafts at 120 sight. For more clarity go through ISBP B5.

Regards
Felix

[GUBAZ]

Hi Saleem ,

As per L/C term , below information will be used to calculate maturity date. if discrepant documents have been take up before maturity date,maturity date is 15/03/2015 ( if it is non Banking day the date will be extend following banking day).


Payment term 120 days from the date of B/L.
Shipment date 15 Nov 2014
.
the date which taken up discrepant is used as payment term 120 Days after sight.
in a above expample , maturity date will be calculated after acceptance date.
if l/c have bee issued as per UCP600 , central bank cant change or delay maturity date.

please read ISBP745 B2 regarding to calculate maturity date.the matter will be clear.