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document not called for

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Tue, 02/21/2012 - 07:43
lwaralar
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Joined: 09/14/2010
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Hi DC specialist,

I'd like ask you about issue i faced with. Please share your opinions.

45 A : xxxxx (goods descripion) C and F xxx port.

46a : 1. Commercial Invoice.

         2. Full sets of Bill of Lading consiged to the order of issuing bank .

         3. Packing List

        4. C/O

        5. Insurance will be covered by the LC applicant under the policy of xxxx insurance ltd.

The bene presented all required documents except a document under 46a-5.

the presented documents are all complinant except that the doccument called for under 46a-5 is not presented. 

Question.

1.is the discrepancy valid?

2. if the bene presented Insurance document, does the bank need to check the insurance document?

3. will any non-documentary condition such as 46a-5 be deemed to be a required documents, if it is stated in 46a i/o 47a ? 

4.(1)what if the 46-5 was stated in 47a i/o 46a, is it still a required document? 

(2)what if lc calls for a document in 47a i/o 46a, is it still a required document?

Thanks

from LC student

 

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Thu, 02/23/2012 - 01:47
#1
Razi
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Joined: 01/28/2009
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LC FIELD 46 A

 

Hi

Please see reply in bold.

1.is the discrepancy valid? NOT VALID

2. if the bene presented Insurance document, does the bank need to check the insurance document? ITS LC ISSUING BANK'S MISTAKES THAT THEY MENTIONED SAID CLAUSE IN 46A INSTEAD OF 47A AND CONTENTS ITSELF SOUNDS AS INFORMATION ONLY SO THERE IS NO NEED TO PRESENT INSURANCE CERTIFICATE AT ALL.

3. will any non-documentary condition such as 46a-5 be deemed to be a required documents, if it is stated in 46a i/o 47a ? ITS LC ISSUING BANK'S MISTAKES THAT THEY MENTIONED SAID CLAUSE IN 46A INSTEAD OF 47A AND ITS BETTER TO GET LC AMENDED/CORRECTED.

4.(1)what if the 46-5 was stated in 47a i/o 46a, is it still a required document? ITS LC ISSUING BANK'S MISTAKES THAT THEY MENTIONED SAID CLAUSE IN 46A INSTEAD OF 47A AND ITS BETTER TO GET LC AMENDED/CORRECTED.

(2)what if lc calls for a document in 47a i/o 46a, is it still a required document. YES IF IT SAYS ADDITIONAL DOCUMENTS REQUIRED.

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Tue, 02/21/2012 - 10:29
#2
suhasthosar
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Joined: 10/05/2008
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Hi , the condition under 46A

Hi , the condition under 46A - 5 does not stipulate a document to be presented.

Therefore if you refer to Article14h- which readrs as if a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated & will disregard it.

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Wed, 02/22/2012 - 12:49
#3
pan
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Joined: 09/13/2007
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Documents, additional documents and advices

Hi Friend,

L/c bad worded, Insurance buyers care is just an information for the parties involved. It means that the cargo is covered by an insurance that has been established by the buyer. In publication no.516 on UCP 500, in the paper form to be filled in issuing l/c (I am very old !) there was a box to be X marked and the comment was:

-INSURANCE COVERED BY BUYERS-the box should only to be X-marked when the credit does not require the presentation of an insurance document and the applicant has indicated that he has insured or will insure the goods.

Just only an information!!!

Ciao

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