What is the interpretation of a clause [“documents to be presented within validity of the credit”] inserted under SWIFT MT700 field 48.
We have two different opinions among our local community:
1) It means that documents can be presented any time within the validity of the credit even if it is later than 21 days after the shipment.
2) It has no meaning (ambiguous instruction) to insert such clause. SWIFT Usage Rules and definition stating that “The period for presentation is expressed in number of days. The absence of this field means that the presentation period is 21 days, where applicable.”. Therefore Article 14-c still applies.
It is my opinion that this field never allow bank to insert clause to make interpretations not provided under such rule (as well as UCP). If the intension is to allow presentation over 21 days, the credit should be very clear (under field 47B) indicates that “presentation later than 21 days after the date of shipment are acceptable, but in any even not later than the expiry date if the credit” or even put “Stale documents are acceptable” [not recommended] as defined under para 21-b of the ISBP.
Appreciate your opinion on the above.
Albert
[edited 7/20/2007 7:04:05 PM]
MT 700 field 48 & sub article 14-c
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AbdulkaderBazara
- Posts: 256
- Joined: Fri Apr 05, 2019 5:15 pm
MT 700 field 48 & sub article 14-c
I agree with your opinion; the clause does not add to what already exists; documents have to always be presented within the validity period of the credit but for a presentation that contains a transport document, unless expressly stated, documents must also be presented within the 21 days from the shipment date. Thus, when the presentation contains a transport document, there are two limits that need to be complied with: the expiry date and the presentation period.
However, when there are two differing opinions or confusion, the best and the safest thing to do is always to contact the issuing bank and get the required clarifications. This way we avoid wasting time arguing.
Best Regards
Abdulkader
[edited 7/21/2007 8:19:53 AM]
However, when there are two differing opinions or confusion, the best and the safest thing to do is always to contact the issuing bank and get the required clarifications. This way we avoid wasting time arguing.
Best Regards
Abdulkader
[edited 7/21/2007 8:19:53 AM]
MT 700 field 48 & sub article 14-c
A beneficiary should know what the UCP rule on presentation says but should not know what the SWIFT usage rule says and in any event should not be expected to ignore the effect of these words on the UCP default rule of 21 days. This language is a bit careless but not so bad as to support refusal on late presentation grounds. Regards, Jim