ICC Digital Library Forum

Dear all,

Your comments on the following scenario are appreciated:

Facts:
- LC amount: USD250,000.00 available with any bank by negotiation.
- Goods: Cashew
- Date and place of expiry: September 20, 2008 in beneficiary’s country.
- Period for presentation: 15 days after b/l date but within the LC validity.
- Documents (including b/l) dated September 10, 2008.
- Covering Schedule dated September 6, 2008.
- On September 18, 2008 the issuing bank sent a notice to the negotiating bank stating that they refused the documents due to the following discrepancy: “All documents including b/l, inv., c/o dated later than the date of presentation (i.e., September 6, 2008)”.
- On September 19, 2008 the negotiating bank sent a swift message confirming that the covering letter was dated by mistake September 6, 2008 and that the actual presentation date was September 11, 2008. A courier receipt dated September 13, 2008 was also faxed to the issuing bank same date to evidence that the actual presentation date was true and logical.
- The issuing bank replied they were asking for the applicant’s waiver.
- Other information: Cashew price in the market was dropping down.

Question:
Is the negotiating bank entitled to the issuing bank’s reimbursement in this case?

Best regards,
N.H. Duc

[edited 10/3/2008 2:40:52 AM: Adding specific documents dated later than the date of covering letter]

The covering letter is not a required document under the LC and does not form part of the documents to be examined. See Docdex 255.
Having received a message that the covering letter was misdated, the issuing bank must reimburse.
Daniel

I agree with Daniel.

Having received the clarification from the Nominated Bank the facts now make it clear that the documents are not in reality dated later than the date of presentation.


Svetlana

Dear Daniel and Svetlana,

Many thanks.

I think the same.

Best regards,
N.H.Duc