ICC Digital Library Forum

If an Issuing Bank issued and LC calling for:
- invoices in 2 originals
- insurance document
-certificate of origin
-full set bills of lading

If the Issuing Bank received a presentation from a remitting nominated bank clearly stating it was a First Mail and the presentation only included

- One original invoice
- insurance
- 1 out of 3 bills of lading

Should the Issuing Bank check the documents immediately as per article 14?

If the issuing bank did not issued a notice of refusal by close of the fifth banking day following presentation would preclusion apply to that Issuing Bank?A

Svetlana

Svetlana,

An opinion published in INSIGHT (January-March 2002) seems to tell us that the rejection should be based upon the content of the first mailing
Daniel

Daniel

Thank you for this infomration of which I was not aware.

It seems an unusual conclusion and in this case a Confirming Bank and then the Issuing Bank will determine compliance of presentations containing different 'packages' of documents but which were presented by the beneficiary as one presentation/package.

This means Issuing Banks must take heed of the operational risk of missing the deadline of 'maximum 5 banking following the day of presentation (first mail) to determine if that presentation is complying.

Thank you.
[edited 1/30/2008 6:25:50 AM]

Actually, in an ideal world, each mail should contain originals of every document in order to make it possible to check them without having to wait the next mail which will come or which will not. Each mail should also make it possible to clear the goods and take possession of them. If it is not possible , I think something is wrong. In that case, all documents should be sent in one mail.
Daniel

Dear Svetlana,
You should have sent under 1st mail not only the invoice, 1/3 b/l and insurance doc. but c/origin too.
As I know, it is usual when only one original/copy of a doc. is required, that original/copy to be sent under 1st lot.
Iss. bank have to have the posibility to check one original/copy of each document under 1st presentation (lot).
I understand l/c is subject to UCP500. So iss.bank will have the 7 banking days after receipt of the 2nd lot that includes the c/origin.
Regards,
Bogdan

Dear Svetlana,
By mistake I suposed you are refering to UCP500.
Anyhow, you should wait for the 5 banking days after receipt of 2nd lot by iss.bank.
Bogdan

It appears that first mail documents must be examined within the maximum of 5 banking days by Issuing Bank.

But what if a document is not included in the first mail which comes in the second mail and that document in second mail is discrepant.

Will the Issuing Bank have missed the deadline to refuse?


Svetlana

Hi
Art 14 mentions 5 banking days following the day of ''presentation''
and one would have to assume that a presentation would constitute an entire set of documents combining both 1st and 2nd lot.
Regards
Jason

...but what if the 'second mailing' does not arrive until 10 days later .. and the additional documents create conflict ?

If for some, the presentation is 1st set AND 2nd set, could they explain what is the point of sending the documents in two sets
Daniel