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Enquiry on LC Expiry Date

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Sat, 04/04/2009 - 07:24
simplyxuez
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Joined: 04/04/2009
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Hi All,

I'm a newbie in LC, thus seeking expert opinions for below-mentioned issue :-

 My buyer has raised an LC of $10k and I've claimed $6k of payment. Partial shipment is allowed in this LC. Expiry of this LC is 15 Apr 09 & latest shipment date is 25 Mar 09.

I'll be shipping out the balance of the goods on 11 Apr 09, so apparently my Commercial Invoice & Packing List will reflect 11 Apr 09. Will this date consider as a discrepancy whille I submit my documents to my bank as the latest shipment date stated in the LC is 25 Mar 09?

And i presume I will submit the relevant documents most likely after the expiry date, let's say 18 Apr 09. Will my balance of 4k consider expired, thus null & void since I submitted my documents after the expiry date OR this will be consider as a discrepancy of late presentation and discrepancy charges will incur?

 

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Mon, 04/06/2009 - 07:14
#1
smmujeeb
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Joined: 07/29/2008
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Enquiry on LC Expiry Date

Yes, what ever documents you submit after expiry date would be consider as discrepant, as LC will be expired.

Better option available for you is amendment, ask applicant to extend the expiry date and shipment date.

Regards!!!!

Mujeeb :-)

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Sat, 04/04/2009 - 08:59
#2
Mytrade
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Joined: 04/02/2009
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Yes, any docs you present

Yes, any transport doc. you present dated after the 25/03/09 will be considered discepant as "late shipment", a clear discrepancy. After the expiry date the L/C stops to exist so you can't make anymore presentations under it. As we are already past the latest date of shipment i believe your options are:

1-  Ask the applicant to extend the validity of the L/C and push forward the latest date of shipment through an amemdment. This will generate extra costs.

2- Get the applicant to accept and waive the discrepany but he can only do that within the validity of the L/C. Once it expire, the bank will drop all it's involvement in the transaction and will have to deal with the applicant on open terms.

hope this helps

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