Best Trade Solution

if the beneficiary presents the document to a bank z within the presentation period allowed in the credit, other than the nominated bank, and the bank z forwards the document to the issuing bank but issuing bank receives the documents after expiry of the presentation period, is issuing bank right in refusing the document to honour.

There are 2 situations on your question depent on field 31D: date and place of Expiry.
If 31D states the place is the country of Z bank, I think Issuing bank cannot refuse the bill.
If 31D states the place is the country of Issuing bank, it has the right to refuse the bill.

Dear Pankajkumar,

IMHO it is Discrepancy.

As I guess date and place of expiry was at Nom. Banks premises. Anyway Bank Z could forward docs directly to issuing without using Nom. Bank. Article 6 a. But it should be within the expiry date. So I think it is discrepancy as issuing Bank received it after expiry and Nom Bank could not identify this date because docs was not presented to them.

Thank,
Gega

where does the LC expire?

if the lc expires in country A, and bank Z is in country A - then imho, the docs were submitted within the validity of the LC. If the LC expires at the counters of the issuing bank, then this is a discrepancy.

pankajkumar wrote:if the beneficiary presents the document to a bank z within the presentation period allowed in the credit, other than the nominated bank, and the bank z forwards the document to the issuing bank but issuing bank receives the documents after expiry of the presentation period, is issuing bank right in refusing the document to honour.

-
1. Beneficiary presents the document to bank 'Z'' other than nominated bank.
2. After expiration of the presentation period, issuing bank receives the documents

It is discrepant. Issuing has the right to refuse the document to honour.

Shams
Bangladesh

What is the the LC Expire Country? is it Issuing bank country or Nominated bank country?
If Nominated bank country and bank Z is the same country than above presentation is complying presentation.

So, IMO no discrepancy.


Other comments pls

Mohiuddin

Dear
It is discrepant. Presentation period already expired
shams

Dear mohiuddin,

So let's say that normally if LC was available with Nom. bank expiry would be there (I say in standard situation).

Lets say place of expiry is Switzerland and Nom. bank is located in Switzerland as well.

So as you say if advising Bank Z was in Switzerland and if Bene presents docs to that Bank Z within time and if issuing bank gets it after expiry date, it is not discrepancy. yes?

Because my opinion was that, if LC was available with Nom. bank which is located in Switzerland and Place of expiry is Switzerland, they should have presented to that Nom. Bank within time or directly present to issuing Bank within time. Otherwise as you say and if i guess correctly bene can present in any bank located in Switzerland within time and if issuing bank gets this docs after expiry date it is not discrepancy? yes?

I can't get link between presentation and availability under article 6 d.ii in such situation.

Hi,

Sorry for my earlier post, Yes PRESENTATION IS DISCREPANT i.e. LC expired.

I miss the point that have a special nominated bank.

Mohiuddin