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Period of Presentation

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Fri, 06/25/2010 - 03:26
amjadnawaz
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Dear Experts,

We received a LC, wherein field 48 period of presentation states that "15 days after shipment date but within LC validty"

Last shipment date is June 20, 2010

Expiry date: July 05, 2010 at Benf. Country

We have made shipment on June 01, 2010 and presented the documents on June 18, 2010.  Our bank pointed out a discripancy "Laste presentation"

Is this a valid discripancy or not?

Please comments.

Regards

Amjad

 

‹ funding LC 100% for Logistic cash The payment terms have nothing to do either closely or from afar partial shipments ›
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Sat, 06/26/2010 - 01:35
#1
deneessn
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Hi All,

The case :

48:15 days after shipment date but within LC validty

This actually means that documents has to be presented  within 15 days after shipment to the bank counters. Here date of shipment is  June 01, 2010. Hence the latest date for presentationof documents is June 16,2010. Any presentation made after June 16, will be a late presentation.

Another Case : 

48:more than 15 days after shipment date but within LC validty

This implies that documents can be presented anytime after the shipment date but within the LC validity or LC expiry date.

These two cases does not prohibit earlier presentation.

Trust this clarifies.

 

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Sat, 06/26/2010 - 00:28
#2
amjadnawaz
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Period for presentation

Thank you all for comments.

Please let me know, our bank asked that '15 days after date of shipment means' 16 days of shipment and you should must present documents on 16 days of shipment,  but as my understanding  "15 days after shipment but within LC validty" means after 15 days of shipment ie 16 days  to ...... till expiry  date of LC, because there a open option in the LC till expiry date.

Please comments. 

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Sat, 06/26/2010 - 02:28
#3
pan
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misunderstanding

Hi Friend,

Could you contact the ICC Organization in your Country or the local Bankers Association. I received a very interesting official comment by the ICC India vs a behaviour of an Indian Bank that was not as per UCP 600.

Could you, moreover, scan the l/c wording and post it here, naturally cancelling sensitive details ?

Ciao 

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Fri, 06/25/2010 - 08:14
#4
LC Specialist
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Period of Presentation - Amjad/Pan

Pan, did you notice what is the presentation period.

Its 15 days after shipment.

Onboard date is 1 June : You have to present documents after 16 June, if you submit the docs before 16 June than it will be an early presentation.

Issuing bank is absolutely wrong in rejecting the docs.

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Fri, 06/25/2010 - 14:29
#5
Abrar
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presentation period

I'm afraid I would agree with Pan's interpretation. The expansion of information in field 48 in the stated case, does not vary the intention or meaning of the presentation period. It remains as "within" X number of days after shipment date. The only correct interpretation is to consider that the word "within" should preface the given wording in this case.

Had the intention been to restrict presentation to be no earlier than x number of days after shipment, such information would have been required to be expressly stated under Field 47A (additional conditions) or the like.

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Fri, 06/25/2010 - 09:44
#6
pan
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never heard

Hi Friend,

I dont know where are from, but your understanding seems to me wrong. If you read the book 7 of SWIFT, illustrating the field 48: Period of presentation states:

-This field specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation.-

I never heard about the prohibition of an early presentation

Naturally ready to change opinion.

Other comments appreciate

Ciao

 

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Fri, 06/25/2010 - 04:29
#7
pan
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Joined: 09/13/2007
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yes

Hi friend,

period of presentation is a time limit to deliver documents to the bank where credit is available after the shipment date.

So if you ship on the June 01, 2010, document must be presented before/on June 16 if the period of presentation is 15 days, even if the credit expiry date is July 05.

Rationale: A proper period of presentation is correct to avoid that goods reach the port of destination before that issuing bank and applicant have in their hands documents to take up goods, with possibility to pay demurrage and extra cost to carrier.

A good import manager knows how many days, normally, a vessel take to reach port of destination, and instruct the ank according to.

From Chine to Europe  15/21 days

From Genova to Algiers 3/4 days.

Etc:

Other comments appreciated

Ciao

 

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Mon, 07/05/2010 - 13:53
#8
mia vervacke
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presentation period

Please note that the 15 days are CALENDARDAYS and not working days.

Please also note that latest date of presentation is extended until the next working day if latest date of presentation  falls on a non business day (saturday, sunday or other holiday).

Documents presented on 18 june 2010 is strictly a discrepancy. Beneficiaries bank has however 5 days to check the documents. In fact beneficiaries bank can certify on the remittance shedule that they received the documents within the presentation period (until 5 days after the latest presentation date). Then documents presented only 18 june is no longer a discrepancy. I assume a lot of banks do this to serve their client.

Other comments appreciated

Mia Vervacke

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