Revised Draft

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Wed Dec 16, 2009 12:00 am

Dear all

Should revised draft be presented within latest presentation date or expiry date or no limitation.

We(Nominated bank) presented shipping docs to issuing bank. IB quoted a discrepancy on draft. Beneficiary revised the draft and we represented the revised draft. But IB refused to payment again owing to late presentation. We refute that late presentation is not applied to draft because draft is a financial instrument not required by LC.

Are we correct or IB correct. If we are correct, could anyone give a related ICC opinion.

Best regards
Eric

NigelHolt · Post by **NigelHolt** » Wed Dec 16, 2009 12:00 am

Bonkers though it may seem, I think it all depends on if the draft was a document required under the credit. (There are a number of opinions regarding this, I believe. I suggest you search in DC-Pro.) If it was not, the IB was not entitled to refuse the documents in the first place. If it was, the IB was entitled to refuse the second time.

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Thu Dec 17, 2009 12:00 am

Thanks JSMITH

But I could't find out in DC PRo.
Can you give more your precious comments. Draft requirement are in only Field 44 C and A.
46A and 47 A are silent about requirement of draft.

Thanks and best regards
Eric

[edited 12/17/2009 8:18:00 AM]

NigelHolt · Post by **NigelHolt** » Thu Dec 17, 2009 12:00 am

Sorry, I think I must have been thinking of TA.703 which was considered at the last ICC ‘Banking’ Commission meeting. I do not know the outcome but anticipate it is highly relevant to your query, so suggest you try to obtain a copy of the approved opinion.

Suggest you also see Docdex Decision 260 & the English court case CREDIT INDUSTRIEL ET COMMERCIAL v CHINA MERCHANTS BANK at:
http://www.bailii.org/cgi-bin/markup.cg ... od=boolean .

SOOEYOUNKIM · Post by **SOOEYOUNKIM** » Fri Dec 18, 2009 12:00 am

Dear JSmith

I really appreciate your response.

Thanks and best regards
Eric