LC has a latest shipping date of April 25 and expiration date of June 5. Presentation of docs after 21 days is permitted. LC goes on to say that shipment can be effected within 21 days after the latest shipping date, against a penalty to be deducted from the payment. It then states "under these circumstances the validity of the credit is proportionally extended". To me this means, if shipment is 5 days after the latest shipping date the validity is extended by 5 days and so on, up to a maximum 21 days. The nominated bank says that the LC needs "an exact expiry date" and "under the circumstances...extended" is to be deleted.
Comments, please. Thanks