Corrected Document after refusal

asamaha · Post by **asamaha** » Fri Dec 23, 2011 12:00 am

An issuing bank refuses a presentation for reason of discrepancy in the invoice and holds the documents at the disposal of the confirming bank.

Is the CB liable to honor/negotiate the presentation of a replacement invoice complying with credit terms?

Thanks

GlennRansier_olsABN · Post by **GlennRansier_olsABN** » Tue Dec 27, 2011 12:00 am

Yes, if the documents comply with all the credit's terms, they must be honoured. It does not matter if it takes various presentations. All documents should be received by the latestest presentation/expiration dates allowed in the credit.

DanielD · Post by **DanielD** » Tue Dec 27, 2011 12:00 am

I assume CB did not honour on presentation of documents due to the discrepancy. Why did it not request a new invoice (which is under direct control of the bnfciary) and send a correct one to IB?
Daniel

asamaha · Post by **asamaha** » Wed Dec 28, 2011 12:00 am

Yes the CB did not honour on presentation of the documents due to a discrepancy in the invoice. It has sent them to the IB for approval at the request of the benef. But they have been refused by the IB and held at the disposal of the CB.

Is the CB still liable to act as a CB if the benef presents in time a corrected invoice ?
Antoine

GlennRansier_olsABN · Post by **GlennRansier_olsABN** » Wed Dec 28, 2011 12:00 am

If all complying documents are received in accordance with the LC's terms then the CB and IB must honour (CB may negotiate as applicable). There is no UCP prohibition on the amount of presentations that may be made.

DanielD · Post by **DanielD** » Thu Dec 29, 2011 12:00 am

I agree with Glenn but I am still surprised that a document which would have been easily corrected or replaced has been as it is to IB
Regards
Daniel

asamaha · Post by **asamaha** » Sat Dec 31, 2011 12:00 am

Thanks and happy new year
Antoine