We have received two refusal notice from Issuing and Confirming Bank.,
need your opinion on the same.
Case 1 : LC states
"Shipping details to be fax to applicant within 3 days of shipment" and a
copy of fax confirmation should be attach ... Onboard date is 22 Feb
2010
Shipping details issued by beneficiary shows issue date 2 Feb 2010
but not presented Fax confirmation....
Issuing bank has rejected
the docs stating "Shipping details issued before B/L onboard date". Is
the refusal notice valid.
Case 2 : LC states "Bene cert to confirm B/L No and
Date, Vessel NO and Onboard date".
B/L onboard date and issue
date are same : 28 Feb 2010.
Bene cert shows B/L no and date :
shows only B/L No .... no date
Vessel No and Onboard date : Vessel XYZ and 28 Feb 2010
Confirming
bank rejected the documents stating "Bene cer omits to show B/L issue
date" .. is the refusal notice valid.
Thank you !!!!!!
case discussion
-
elly.may
- Posts: 8
- Joined: Thu Mar 11, 2010 8:00 pm
- First Name: elly
- Last Name: may
- Organization: cmb
- Filter: Two Plus Two =: 4
-
Negotiator
- Posts: 47
- Joined: Thu Mar 18, 2010 6:36 am
- First Name: Ivan
- Last Name: Lee
- Organization: N Bank
- Filter: Two Plus Two =: 4
Shipping details...
Dear Elly,
Good questions. It's hard to give a definite answer for the 2nd question. The discrepancy raised by issuing bank may be valid on the basis of the fact that issuing bank clearly required the B/L issuance date to be shown on the BENE CERT. However, from a different point of view, the applicant and issuing bank will not suffer anyway from omission of the B/L issuance date on the BENE CERT, provided that the L/C also requires B/L to be presented and there no requirement exists that the BENE CERT to be faxed to the applicant before presentation. This may be a case-by-case problem.
With regard to the 1st question, I'm not sure what the 'fax confirmation' means exactly (FAX report, or anything else?), but issuing bank's notice of refusal never mentioned about missing fax confirmation anyway.
Moreover, the L/C stipulated "Shipping details to be fax to applicant within 3 days of shipment", but not "Shipping details to be issued within 3 days of shipment". Therefore, the refusal notice of issuing bank is not valid in my opinion.
More comments welcome
Lee
Good questions. It's hard to give a definite answer for the 2nd question. The discrepancy raised by issuing bank may be valid on the basis of the fact that issuing bank clearly required the B/L issuance date to be shown on the BENE CERT. However, from a different point of view, the applicant and issuing bank will not suffer anyway from omission of the B/L issuance date on the BENE CERT, provided that the L/C also requires B/L to be presented and there no requirement exists that the BENE CERT to be faxed to the applicant before presentation. This may be a case-by-case problem.
With regard to the 1st question, I'm not sure what the 'fax confirmation' means exactly (FAX report, or anything else?), but issuing bank's notice of refusal never mentioned about missing fax confirmation anyway.
Moreover, the L/C stipulated "Shipping details to be fax to applicant within 3 days of shipment", but not "Shipping details to be issued within 3 days of shipment". Therefore, the refusal notice of issuing bank is not valid in my opinion.
More comments welcome
Lee