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Dear Experts

How long we can hold the documents after notifying the discrepancy '16 iii (b)' to Negotiating Bank?
Is there any time frame? Can we return the documents if the applicant not receiving the documents?


Regards
Khurshed

Hi Pal,

once sent a mesage "notify", you are free to return document following the Art 16 e.
I will wait for a while, the negotiating/presenting bank may instruct you further or the applicant
will take up documents in few days.
Other comments appreciated
Ciao

Hi,

I think, there is no time limit for an issuing bank to hold the docs, unles applicant give a waiver, or the beneficiary reuest to return them.

Best regards

I agree with Antonio.

Please also refer to ICC opinion R429

There is no "international practice" with regard to the amount of time that an issuing bank has before the documents should be returned. ... Normally, it would be the issuing bank that would decide that the amount of time it has held documents is considered to be excessive (without further instructions from the presenter) and that with a reasonable amount of notice - for the presenter to provide fresh instructions - it would be returning the documents unless fresh instructions were received.

Article 16(e) is also clear on the issue

... 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.

However, there are certain aspect of the article that i am not comfortable with. for example, with 16(e) in hand, a bank can mention in its notice of refusal that it is holding the document and in reality return the document the same day! same is for chasing applicant's waiver.

The article also reads "after providing notice required by sub-article 16(c)(iii)...". Does 16(c)(iii) requires any notice? As i understand, 16(c)(iii) is all about what must be written in the notice. Therefore some people consider that the return of the document requires a notice of return

more comment appreciated

There is no time limit as such however if the docs are not returned, it has to be securely kept with the issuing bank. (as per the CDCS text book)

hello,

i think there is no time limit of holding documents after notifying discrepancies to the document presenting/negotiating/collecting bank. it can be returned after receipt of request of applicant or make payment after receipt of acceptance of discrepancies.