stale documents

[bysani_rams]

l/c terms
documents required:one original b/l
additional condition:stale documents acceptable
period of presentation:15 days
expiry date:30 may

shipment date:2may
beneficiary present the document on expiry date.
is it a discrepancy?

[Jackie]

Hello

Normally when a l/c is issued the shipment date plus negotiation date equals the expiry date which it clearly does not in this instance. For the purpose of l/cs, the term "stale documents" normally refers to the b/lading and any b/lading presented more than 21 days after shipment would be considered to be "stale". Please see ISBP article 21 b "Expressions not defined in UCP 600"

"stale documents acceptable" documents presented later than 21 calender days after the date of shipment are acceptable as long as they are presented no later than the expiry date for presentation as stated in the credit".

In the absence of this statement, if documents were presented later than 21 days after shipment date, I would consider them stale. Perhaps clarification should be sought from the issuing bank.

Thanks Jackie

[bysani_rams]

hi,
plz clarify this doubt
l/c requires one copy of transport document
expiry date:30 may

beneficiary
shipment date:2may
beneficiary present one original transport document on expiry date 30 may.
Is it a discrepancy according to sub article 14(c)?

[danohng]

Yes, I would consider this is a discrepancy under UCP600 article 14(c) even the document presented within the validity of the LC. Unless the LC term allow for such presentation.

[berry]

to answer the first post;

there wont be a discrepancy as per ISBP

b. "stale documents acceptable" - documents presented later than 21 calendar days after the date of shipment are acceptable as long as they are presented no later than the expiry date for presentation as stated in the credit.

for the second post, they are also not discrepant as copies of transport document presented and UCP 14c applies to original transport document only

[21vita]

it's issuing bank's responsbility to give clear meaning of the "stable b/l acceptable"
in my humble opinion,the clause of lc is ambigious.
stable doc in this lc could not be deem to be the docs 21 c days after shipment date,cause lc clearly provides a presentation period.ISBP'S 21 c days can not be applied,in such circumstance,issuing bank must clarify the meaning of stable docs.

bene had better present doc within 15 days. if doc presented on expriy date ,there would be dispute

[bysuma]

hi, ram
hope you fine,
I appreciate your observation .i think it's not a discrepancy ?
l/c states that stale documents acceptable so after 21 days after shipment date on or expiry date it is acceptable.

regards
suma

[nayanrshah]

I think it's not a discrepancy .When there is a ambiguity benefit always passed on to Beneficiiary.
.
l/c states that stale documents acceptable so after 21 days after shipment date on or expiry date it is acceptable.
.
regards
nayanrshah@hotmail.com

[jennyshred]

The shipment date and a negotiation date could really be until the expiry date of the shipping of the document. Maybe it could really need some adjustments.