Documents available for presentation with the issuing bank.
The issuing bank refuses payment due to late presentation.
Courier companys’s register shows that the issuing bank has
received documents on a specific date, which is last date for
presentation.
Would you consider this specific date as date of receipt of documents by the issuing bank ?
It is possible that documents have been delivered to Trade Finance Department a day after and in such case the presentation is late.
Would you, at all, check courier records to check the date of receipt?
Some ICC Opinion on this issue?
Thanks in advance to all who want to share their views.
Regards,
Sladjana Skakic
Date of receit of documents
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SladjanaSkakic
- Posts: 57
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HOANGTHIANHTHU_invalid
- Posts: 189
- Joined: Fri Apr 05, 2019 5:15 pm
Date of receit of documents
Hi,
The issue here is whether the documents were delivered to the issuing bank within the issuing bank’s banking hours or outside its banking hours.
If the documents were delivered to the issuing bank (whether directly to Trade Finance Department or to the receptionist of the bank) on the last day for presentation and within the issuing bank’s banking hours, the issuing bank must accept such a presentation as being made within the stipulated presentation period. However, if the documents were delivered to the issuing bank on the last day for presentation but outside its banking hours, the issuing bank has no obligation to accept such a presentation (see Article 33 – Hours of Presentation).
Please also refer to ICC Opinion R265.
We would not check courier records to determine the date of receipt. However, if the issuing bank refuses the documents due to late presentation but we believe that the document may have delivered to the issuing bank by the last day for presentation, we may ask the courier service to provide the evidence (e.g. courier deliver note) for us to reject the issuing bank’s refusal.
Best regards,
N.H.Duc
The issue here is whether the documents were delivered to the issuing bank within the issuing bank’s banking hours or outside its banking hours.
If the documents were delivered to the issuing bank (whether directly to Trade Finance Department or to the receptionist of the bank) on the last day for presentation and within the issuing bank’s banking hours, the issuing bank must accept such a presentation as being made within the stipulated presentation period. However, if the documents were delivered to the issuing bank on the last day for presentation but outside its banking hours, the issuing bank has no obligation to accept such a presentation (see Article 33 – Hours of Presentation).
Please also refer to ICC Opinion R265.
We would not check courier records to determine the date of receipt. However, if the issuing bank refuses the documents due to late presentation but we believe that the document may have delivered to the issuing bank by the last day for presentation, we may ask the courier service to provide the evidence (e.g. courier deliver note) for us to reject the issuing bank’s refusal.
Best regards,
N.H.Duc
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SladjanaSkakic
- Posts: 57
- Joined: Fri Apr 05, 2019 5:27 pm
Date of receit of documents
Thank you for your reply and useful information about R216.
Regards,
Sladjana
Regards,
Sladjana
Date of receit of documents
Just a small point, which may already be understood, while the issuing bank has no obligation to accept a presentation outside its banking hours, if nonetheless delivery was actually made to the issuing bank after its banking hours have finished (and it can be proved) the issuing bank is not entitled to regard delivery as having been made the following banking day.
Date of receit of documents
Jeremy,
Are you sure about that?
Regards
Daniel
Are you sure about that?
Regards
Daniel
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KimChristensen
- Posts: 404
- Joined: Fri Apr 05, 2019 5:21 pm
Date of receit of documents
I think that Jeremy is correct; see R648 / TA635rev Query 2.
Have a nice weekend.
Kim
www.remburs.com
Have a nice weekend.
Kim
www.remburs.com
Date of receit of documents
Kim,
Have a nice weekend too but I had also R648 in mind, namely:
"...on the basis that the documents are considered to have been received for the next working day of the trade departement"
Regards
Daniel
Have a nice weekend too but I had also R648 in mind, namely:
"...on the basis that the documents are considered to have been received for the next working day of the trade departement"
Regards
Daniel
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KimChristensen
- Posts: 404
- Joined: Fri Apr 05, 2019 5:21 pm
Date of receit of documents
Di Daniel,
Indeed I was not happy to drag out R648
I was thinking about these two segments:
Quote
A bank that receives documents on a day when the mail receiving unit is working, but the trade department is not, may decide to acknowledge receipt of the documents, but on the basis that the documents are considered to have been received for the next working day of the trade department.
…
By accepting a presentation of documents outside the bank's normal banking hours would mean that, in this case, Saturday would count as the day of receipt of the docu-ments for the purposes of sub-article 13(b)." The same premise would apply under UCP 600 article 33.
Unquote
The way I read this (which may indeed be wrong) is that in case the trade department is closed but the banks mail receiving unit is – then the mail receiving unit need to ei-ther
1) refuse to receive the presentation or
2) to receive it on the basis that the documents are received on the next working day.
If they do not do either of the two then the presentation is considered delivered on the day they are handed over to the banks postal reception i.e. outside the working hours of the trade department.
I would not consider it likely that the person working in the banks mail receiving unit would be capable of making the choice to refuse to receive the presentation or to re-ceive it on the basis that it is received on the next working day. I am certain that he or she would simply receive the presentation …. which by the way is just a letter for the trading department. It does not spell out: “This is a presentation under a documentary credit”
Best regards
Kim
www.remburs.com
Indeed I was not happy to drag out R648
I was thinking about these two segments:
Quote
A bank that receives documents on a day when the mail receiving unit is working, but the trade department is not, may decide to acknowledge receipt of the documents, but on the basis that the documents are considered to have been received for the next working day of the trade department.
…
By accepting a presentation of documents outside the bank's normal banking hours would mean that, in this case, Saturday would count as the day of receipt of the docu-ments for the purposes of sub-article 13(b)." The same premise would apply under UCP 600 article 33.
Unquote
The way I read this (which may indeed be wrong) is that in case the trade department is closed but the banks mail receiving unit is – then the mail receiving unit need to ei-ther
1) refuse to receive the presentation or
2) to receive it on the basis that the documents are received on the next working day.
If they do not do either of the two then the presentation is considered delivered on the day they are handed over to the banks postal reception i.e. outside the working hours of the trade department.
I would not consider it likely that the person working in the banks mail receiving unit would be capable of making the choice to refuse to receive the presentation or to re-ceive it on the basis that it is received on the next working day. I am certain that he or she would simply receive the presentation …. which by the way is just a letter for the trading department. It does not spell out: “This is a presentation under a documentary credit”
Best regards
Kim
www.remburs.com