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Dear All,

Please share your valuable comment about below matter.Thanks in advance for your kind attention.

Advising bank send documents to issuing bank under a sole presentation. Presenattion included 2 different set of documents and claim as total amount . Issuing bank send MT734 just one for total amount.and later effect payment just for 1 set of document(20.000). as per issuing bank statement discrepancies has not been accepted for second set of documents by applicant . Issuing bank refuse to pay for second payment.So issuing bank practice is comply or not with ICC Rules or opinions ? Can Issuing bank may seperate documents under a sole presentation ?

FIRST SET OF DOCUMENTS 20.000 USD
SECOND SET OF DOCUMENTS 30.000 USD
TOTAL AMOUNT:50.000 USD
.............................................
COVER PAGE OF ADVISING BANK
DOCUMENT OF AMOUNT:50.000 USD
CLAIMED AMOUNT:50.0000

Hi Pal,

even if inserted as total value in the cover letter by the presenting bank, the two sets of document will be treated separately, for the reason that one may be compliant and the other not.
So the MT734 should distinguish the two presentation.
Probably an ICC opinion has been delivered in the past.
Other comment appreciated
Ciao

I feel it may be a quite a real confusion among trade practitioners that a 'set' of documents represent in fact a 'presentation of documents' or , the worse, an independent drawing under a letter of credit.
What defines a 'set of documents' as a presentation or drawing under a letter of credit ? A list of documents required under the credit in the number of originals of copies stated? What about having 2 separate invoices , two sets of B/L, packing list and only one quality certificate covering total quantity but presented in two originals -apparently one for each 'set') ? Or counted to a single one belonging jointly to both sets ? Hmmmm....
Well, let's take an example by going through the art.31 b of UCP600 A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. If the presentation consists of more than one set of transport documents, the latest date of shipment as evidenced on any of the sets of transport documents will be regarded as the date of shipment.
Wait a minute.... a (single) presentation of multiple sets of BL in the above scenario is not considered a partial shipment but still partial drawings???? Very strange here....
Another question than can be raised here: is issuing bank acted in accordance with art 16. c iii ? well, I guess not because a 'presentation' as stated in 16a has been released in part by issuing bank not observing obligations under art 16c. Just to add that a presentation of documents is the property of beneficiary until it has been honored as it was stated by presenter. Please also note that a "presentation" is defined in art2 of UCP as: Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered. There is no word of 'set' of documents and what means a 'set'
However, if the 'creative' issuing bank stated in the credit that " if the presentation consists of multiple 'sets' of documents consisting of separate invoice , transport documents and the like, each 'set' will be treated as a standalone presentation, well, in this case, it is presumably considered that the beneficiary agreed to such conditions and issuing bank may have the option to release that set CLEARLY DEFINED IN THE CREDIT what it consists of. This is what the phrase : They are binding on all parties thereto unless expressly modified or excluded by the credit found in art 1 of UCP600 stands for. If such 'set' has not be defined, the applicant (and issuing bank) bear the risk of ambiguity as stated in preliminary considerations of ISBP for UCP600.
Hope it helps!