| The credit requires Clean On Board Ocean B/L and the shipping date as July 10th and available period as July 20th. The shipping documents were to be presented within 10 days from its issue date. The company A received receivable B/L from a Y vessel company but since the entry of intended vessel was delayed, the products were loaded on July 5th, received On board in the orignal B/L, NEGO through a local D bank and presented the documents to the opening bank. But the opening bank rejected the payment for the document delay and the negotiating bank protested that the document delay is not a relevant cause for the payment rejection.
Case study
1. Shipping document presenting period
The documents are to be presented within the time limit if the clause is stipulated in the credit terms, if not, the documents should be presented within 21 days from the shipping date. (The Article 43 of U.C.P. 500) And the valid period should not be expired.
2. The staring point of reckoning in document presenting
According to the fifth amended U.C.P., it stipulates that "All the credits that requires a shipping document should regulate document presenting period which consist with the orignal credit". (The Sub-Article 43(a) of U.C.P.500) Accordingly, even of a credit stipulates "from the date a shipping document is issued", the actual document presenting period is the starting point of reckoning.
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43-Limitation on the expiry date
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