Returned documents lost in transit

General questions regarding UCP 600
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SladjanaSkakic
Posts: 57
Joined: Fri Apr 05, 2019 5:27 pm

Returned documents lost in transit

Post by SladjanaSkakic » Wed Jul 31, 2013 1:00 am

A reflection:
+ a L/C available with the L/C advising bank
+ the L/C issuing bank received and refused documents presented by the advising bank
+ the L/C issuing bank informed the advising bank that documents have been refused and returned
+ the documents lost in transit, never reached the advising bank and the beneficiary
+ the documents contain full set negotiable bills of lading
.
Who is responsible for postal risk?
What applies in a such case?
.
Thanks in advance for all comments.
.
Br,
Sladjana Skakic
CarmelBorg
Posts: 21
Joined: Fri Apr 05, 2019 5:13 pm

Returned documents lost in transit

Post by CarmelBorg » Wed Jul 31, 2013 1:00 am

I would refer to UCP Art 35
Best regards
Carmel
SladjanaSkakic
Posts: 57
Joined: Fri Apr 05, 2019 5:27 pm

Returned documents lost in transit

Post by SladjanaSkakic » Sun Aug 04, 2013 1:00 am

Thank you for your comment.
The L/C in question is available with the advising (nominated) bank, so in accordance with art 35, when the nominated bank sends the documents to the issuing bank, the postal risk is for the issuing bank, but, when the issuing bank returns the documents, and if art 35 applies, who bears the postal risk in such case, the issuing or the advising bank?
[edited 8/4/2013 6:26:54 PM]
GSham
Posts: 113
Joined: Fri Apr 05, 2019 5:18 pm

Returned documents lost in transit

Post by GSham » Fri Aug 23, 2013 1:00 am

Sladjana,
You may refer to the first paragraph of article 35 for an answer to your query. Applying article 35 in this case, the issuing bank assumes no liability or responsibility for the consequences arising out of the loss of documents in transit.
AndyHunt
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Joined: Fri Apr 05, 2019 5:15 pm

Returned documents lost in transit

Post by AndyHunt » Fri Aug 23, 2013 1:00 am

I am not convinced that article 35 has any great relevance here given that it is designed to protect the presenting bank for loss of documents transmitted to the issuing bank rather than the other way round.
Reference should instead be made to sub-article 16e which allows the issuing bank to return discrepant documents to the presenting bank at any time once notice of refusal has been given. This sub-article is not explicit as to how documents should be returned and, in the absence of any ‘return of documents’ disposal instructions in the presenting bank’s schedule (unlikely), then the issuing bank need only be able to prove that it exercised a duty of care in the manner by which it returned the documents. Returning the documents by courier back to the presenting bank would fulfil that duty of care.
GSham
Posts: 113
Joined: Fri Apr 05, 2019 5:18 pm

Returned documents lost in transit

Post by GSham » Thu Aug 29, 2013 1:00 am

Andy,
Please refer to paragraph one, not paragraph two, of article 35.
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