Help _ The day after the credit has expired, the bank lets me know the documents have been rejected due to two minor mistakes in the paperwork.
Is this acceptable for them to leave it after the credit expires - and what happens next? Thanks, Bwpotman
Rejection after expiry date!
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bwpotman
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Navi
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Further details needed.
Dear Friend,
Expiry date is the latest date for presentation not for examination of documents. Banks (issuing, confirming, nominated bank) have 5 banking day to determine whether presentation is complying and this period may exceed expiry date. If the bank advised refusal within presentation period, then it has right to do so.
Nevertheless, to be sure, we need when docs were presented, to whom (confirming bank, issuing bank or nominated bank...) and when they refused.
regards
Expiry date is the latest date for presentation not for examination of documents. Banks (issuing, confirming, nominated bank) have 5 banking day to determine whether presentation is complying and this period may exceed expiry date. If the bank advised refusal within presentation period, then it has right to do so.
Nevertheless, to be sure, we need when docs were presented, to whom (confirming bank, issuing bank or nominated bank...) and when they refused.
regards
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bwpotman
- Posts: 5
- Joined: Wed Dec 30, 2009 2:40 pm
- First Name: Dave
- Last Name: Bruce
- Organization: KDcats
- Filter: Two Plus Two =: 4
rection after LC expired but within banks 5 days
Hi Navi,
In this question (I will be honest, it is one that has been asked of me..) I have no problem in that the documents were presented before the expiry date ( 3 days before!) and that the banks have 5 banking days to process it. However it was rejected on the fourth day ie 1 day after the LC expired. I was wondering in this situation is there any way the LC can still be paid. It would appear that under UCP600 the LC no longer exists. Normally had the time been available the errors would have been corrected. What would you do?
Thanks, BWP
In this question (I will be honest, it is one that has been asked of me..) I have no problem in that the documents were presented before the expiry date ( 3 days before!) and that the banks have 5 banking days to process it. However it was rejected on the fourth day ie 1 day after the LC expired. I was wondering in this situation is there any way the LC can still be paid. It would appear that under UCP600 the LC no longer exists. Normally had the time been available the errors would have been corrected. What would you do?
Thanks, BWP