Discrepant documents
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HARIFAK
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- First Name: ABDULKHALIK
- Last Name: HARIF
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Discrepant documents
when should discrepant documents that are subject to the issuing bank's refusal notice be release to the applicant if the applicant has indicated a willingness to take them up
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Negotiator
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- First Name: Ivan
- Last Name: Lee
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Disposal of discrepant documents
Hi, HARIFAK
In my view, we must consider which method the issuing bank has choosen with regard to disposal of documents among four methods described in Sub-Article 16.c.iii. of UCP 600 in its notice of refusal.
If the issuing bank("IB") has notified disposal of documents according to :
1) Sub-Article 16.c.iii.a), then IB will be required to ask beneficiary whether IB may release documents to the applicant, because the documents can be handled only according to the beneficiary's instruction in this case.
2) Sub-Article 16.c.iii.b), then the documents may be released to the applicant at IB's discretion, provided that IB has not received any instructions from the beneficiary until IB determines to release documents.
3) Sub-Article 16.c.iii.c), then I guess the situation you assumed in your question will not happen. If IB is still holding the docs despite its notice of refusal, I think that IB must act like 1) above because the docs are the beneficiary's properties anyway.
4) Sub-Article 16.c.iii.d), then IB will be required to act in accordance with beneficiary's previous instructions as stated in this Sub-Article, regardless of the applicant's waiver of the discrepancies.
Is my opinion reasonable? I will be glad if anybody comments more about this question.
RGDS.
In my view, we must consider which method the issuing bank has choosen with regard to disposal of documents among four methods described in Sub-Article 16.c.iii. of UCP 600 in its notice of refusal.
If the issuing bank("IB") has notified disposal of documents according to :
1) Sub-Article 16.c.iii.a), then IB will be required to ask beneficiary whether IB may release documents to the applicant, because the documents can be handled only according to the beneficiary's instruction in this case.
2) Sub-Article 16.c.iii.b), then the documents may be released to the applicant at IB's discretion, provided that IB has not received any instructions from the beneficiary until IB determines to release documents.
3) Sub-Article 16.c.iii.c), then I guess the situation you assumed in your question will not happen. If IB is still holding the docs despite its notice of refusal, I think that IB must act like 1) above because the docs are the beneficiary's properties anyway.
4) Sub-Article 16.c.iii.d), then IB will be required to act in accordance with beneficiary's previous instructions as stated in this Sub-Article, regardless of the applicant's waiver of the discrepancies.
Is my opinion reasonable? I will be glad if anybody comments more about this question.
RGDS.
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shahriar
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disposal instruction
its a very critical and very important question. it totally depends on the disposal instruction either set in the presentation letter or in the refusal advice. the wording of the refusal advice is very important here.
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ybattia
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The issuing bank's right to return back dox!
I totally agree with the above, and I would like to note the following; "UCP600 - 16.e"
the issuing bank do still have the right to return back dox even after receiving applicant's instructions or the beneficiary's according to its refusal notice previously issued.
e. A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may, after providing notice required by sub-article 16 (c) (iii) (a) or (b), return the documents to the presenter at any time.
For example; if the applicant communicated its acceptance subject to a reduction in payment, and the beneficiary refused to do so.. and situations similar to this kind!
Thanks,
the issuing bank do still have the right to return back dox even after receiving applicant's instructions or the beneficiary's according to its refusal notice previously issued.
e. A nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank may, after providing notice required by sub-article 16 (c) (iii) (a) or (b), return the documents to the presenter at any time.
For example; if the applicant communicated its acceptance subject to a reduction in payment, and the beneficiary refused to do so.. and situations similar to this kind!
Thanks,