Shipment date is 15.08.08 shipped on board date is 14.08.08 Lc expiry date is 5.09.08 at the country of beneficiary. Issuing bank receives doc on 15.09.08 and Swift MT99 on 10.09.08. The negotiating bank states documents were presented within time constraints of the LC. Is the point of negotiating bank valid. Does article 14b of UCP 600 applies here. The issuing bank says that the LC has expired and documents have been negotiated after the agreed period of 21 days. Is the point of issuing bank is valid. Please clarify.
UCP600 article 14b is not the answer for you
UCP600 article 14b is not the answer for your question ( 41b means --Negotiating bank has the right to keep the documents maximum five banking days for scrutinizing. In other words , within these days bank has to take the decision whether the dox are in order or under discrepant) .
In your case, you have to checkup the LC 31D, Place and expiry date of LC . Whether in Applicant’s country or in beneficiary’s country. But,wherever is it, the negotiation period is 21 days, If the lC not calling for negotiation period.
Contact: tulsipillaiex@hotmail.com or tulsiusha1@yahoo.com RegardsTulsi/ Dubai
Presenting bank is correct
Negotiating bank statements that dox were presenetd within time constraints of the LC is valid as the LC expires in the country of beneficiary and issuing bank cannot reject the dox as Negotiate banks states dox were presented within time constraints
Issuing bank has to go by the instructions given by negotiating bank the dox were presented to them within time limit of the LC.