post dated documents presented under l/c

[LuisaGalvez]

I would like to find out whether there is an article in UCP500 which relates to post dated documents.
I work for a bank, I handle import & export documentations. I would like to know if the beneficiary has
presented document/s under an l/c and that particular document has been dated way pass the expiry date,
but presented within the validity of the l/c, is it acceptable? Whether it is or not, is there any article
that relate to this scenario?
Please email me with your response. thanks

[PGauntlett]

The date of a document is usually regarded as its date of issue. On that basis I would reject documents dated beyond the expiry date of the l/c.

[AbdulkaderBazara]

The documents would not be acceptable since they would, in most cases, be invalid at the time of presentation. There is no article in UCP 500 covering post-dated documents, however, under the Legal Docket and ICC Opinion section on DC-PRO Focus you may search for “POST-DATED” and you would find the following cases that relate to post-dated documents which might give you more insight:
1) Legal Docket, 1998 LC Case summaries : Brenntag International Chemical v Norddeutsche Landesbank GZ, 97 Civ. 2688(RWS), 1998 U.S. Dist. LEXIS 9142 (S.D.N.Y. 18 June 1998)

2) ICC Opinion – 1997 Queries - Query no. R268

[T.O.Lee]

In summary, the date of a document is not as important as its data content. It also depends on what document you are talking about. The answer may be different for different documents. For example, for an inspection certificate, its issuing date can be later than the date of inspection. There are articles in the previous DCI to support this statement, provided the inspection certificate has specified that the inpection was carried out on a certain date, which may be a date before the issuing date of the inspection certificate. This should be acceptable if we respect the trade practice of the inspection agency.

Bankers should not carry the doctrine of "on the face" too far in examination of documents for compliance. They should not play golf only with bankers. They should socialise with carriers, insurers, surveyors, traders, and other professionals so that they can pick up their practices. This greatly helps them in determination of discrepancies more accurately and convincingly. Otherwise they may be replaced by computer softwares that can perform the same job of "on the face" much better. When banks are talking about headcount reduction, computerisation, operation efficiency and productivity, bankers should armour themselves so that they can justify for their roles in the banks.

As a consultant, we have to catch up with the ever changing trade practices in different trades in order that we are not left behind. There is no such thing as a 50% consultant. You are either 100% or 0%.

I am from www.tolee.com


[edited 5/25/01 12:09:18 AM]

[PavelA]

Re. whether the document dated as suggested above (in future) is acceptable, there is no particular article in UCP500 which would cover this issue. However, in my opinion, the document so dated (after expiry of L/C) would be refused by banks acc. to reasons given above by AbdulkaderB and PGauntlett. I believe this would be the international standard banking practice.

Pavel Andrle