We'd like to apply to you concerning the matter which we are interested in and your opinion would be highly appreciated.
The terms and conditions of a Letter of Credit stipulate presentation of marine/ocean Bill of Lading.
As regards the period of presentation, the Letter of Credit requires that the documents must be presented within 40 days after date of issuance marine/ocean Bill of Lading.
After having received the Bill of Lading and examined it we found out that the field 'Issuance Date' contained the following date: 30.04.2004. There was also an on board notation bearing the separate date: 08.05.2004.
In this connection we wonder
- whether proceeding from the terms and conditions of the Letter of Credit in question we should start to calculate the period for presentation from the real date of issuance (in our case It's 30.04.2004), or from the date of the on board notation (08.05.2004);
- whether the date of the on board notation is deemed to be the date of issuance of marine/ocean Bill of Lading (Such a fact is reflected in Article 45 (c) of Item 'Draft and calculation of maturity date' of International Standards Banking Practice (ISBP). We also want to know if this rule is applicable for drafts only, or whether It's also applicable for examination of the documents and may be considered the general principle).
Bill of Lading on board notation
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VarvaraPatulina
- Posts: 1
- Joined: Fri Apr 05, 2019 5:29 pm
Bill of Lading on board notation
Without liability / responsibility and on a purely personal basis:
A. If the credit literally refers to the date of <issuance>, as opposed to the date of <shipment> (Article 43a refers), I believe you must apply 30 Apr 04 as your ‘calculation date’ with respect to the 40 day presentation period in accordance with the express terms of the credit. (The (il)logic of this is of no concern to a banker.)
B. If the credit stipulated the draft must be payable XXX days after the bill of lading date, I would calculate this period from 8 May 04.
C. I’m not sure I understand what you mean by <if this rule is applicable for drafts only, or whether It's also applicable for examination of the documents and may be considered the general principle>. I certainly have no doubt that for the purposes of Article 43a the on-board date, and not the issuance date, is the operative date.
A. If the credit literally refers to the date of <issuance>, as opposed to the date of <shipment> (Article 43a refers), I believe you must apply 30 Apr 04 as your ‘calculation date’ with respect to the 40 day presentation period in accordance with the express terms of the credit. (The (il)logic of this is of no concern to a banker.)
B. If the credit stipulated the draft must be payable XXX days after the bill of lading date, I would calculate this period from 8 May 04.
C. I’m not sure I understand what you mean by <if this rule is applicable for drafts only, or whether It's also applicable for examination of the documents and may be considered the general principle>. I certainly have no doubt that for the purposes of Article 43a the on-board date, and not the issuance date, is the operative date.