Late presentation, LC expired

[Shahed]

L/C shows under field 48 " Period for Presentation" reads : DOCUMENTS MUST BE PRESENTED AT PLACE OF EXPIRATION WITHIN (15 ) DAYS OF ISSUE DATE OF TRANSPORT DOCUMENTS AND WITHIN THE L/C VALIDITY ".

UCP 600 Art 14 C reads : A PRESENTATION INCLUDING ONE OR MORE ORIGINAL TRANSPORT DOCUMENTS SUBJECT TO ARTICLES 19,20,21,22,23,24 OR 25 MUST BE MADE BY OR ON BEHALF OF THE BENEFICIARY NOT LATER THAN 21 CALENDAR DAYS AFTER THE DATE OF SHIPMENT AS DESCRIBED IN THESE RULES, BUT IN ANY EVENT NOT LATER THAN THE EXPIRY DATE OF THE CREDIT.

Some people's interpretation to the clause for presentation period is that both conditions must be fulfilled, i.e. docts must be presented within 15 days AND also must be within L/C expiry otherwise even though the docts are presented within 15 days but after expiry date, late presentation exists.

I think late presentation and L/C expiry are 2 different issues. If docts are presented to the nominated bank after expiry but within 15 days after shipment date, The discrepancy is only L/C expired, not late presentation. e.g. L/C expiry date is April 1 . Period for presentation is 15 days after shipment date. B/L showing shipment date as March 20 and docts presented to the nominated bank's counter is April 3. In this case, there is only one discrepancy that is L/C expired (there is no late presentation).

Do you agree ?

Shahed
Toronto

[JimBarnes]

I agree that late presentation and credit expiry are two different defenses under UCP and that LC specialists generally understand that and use the terms accordingly. But non-LC specialists do, expectably based on a plain English reading of the term, assume/conclude that late presentation covers presentation after credit expiry.

Regards, Jim

[NigelHolt]

I think it is utterly misleading to use the term ‘Late presentation’ to mean solely that documents have not been presented within the required post-shipment presentation period and I am therefore 100% against it. To me presentation after expiry is equally ‘late presentation’. So as to be clear and precise, the relevant discrepancies should be described as ‘Documents not presented within X days of shipment’ or similar and ‘Documents presented after expiry’ or similar.

[HOANGTHIANHTHU_invalid]

Hi,

I would cite “late presentation” when the documents are not presented within the stipulated period for presentation, and “LC expired” or “documents presented after the LC expiry” when the documents are presented after the LC expiry. However, I agree that “late presentation” can be used to mean the documents being presented after the LC expiry.

Regards,
Duc N.H

[GSham]

In Hong Kong, then Singapore, where I have worked in various trade banks, 'late presentation' is used to describe presentation beyond the period allowed in field 48, 'LC expired' is used to describe presentation made after the expiry date. For clarity, since a bank is given only one chance to send a notice of refusal, it is a good practice to be more detailed in order to avoid confusion or dispute. Therefore it is a good practice to state them respectively as "documents not presented within x days" and "documents presented after expiry".

Regards
Gabriel

[DLloyd1]

Let's face it, if you have "LC expired", you're off the hook. Whatever else you may raise, this is a complete STOP discrepancy.