TA.926rev
Under a documentary credit subject to UCP 600, available with the issuing bank and expiring at their counters, documents were originally presented to the issuing bank within the 40 days from the date of issuance of the transport document. According to the content of the query, the last date for presentation would have been 18 September 2021.
A discrepancy was noted by the issuing bank and the presenting bank obtained and forwarded replacement invoices to the issuing bank. However, owing to problems experienced by the courier company combined with a national festival, delivery to the issuing bank was delayed and only made on 22 September 2021.
The issuing bank refused the documents on the basis of late presentation and returned them to the presenting bank.
It was queried by the presenting bank, on the basis that documents were sent within the presentation period, whether the issuing bank should honour.
In view of the fact that the credit was available with the issuing bank and expired at their counters, a complying presentation should have been made to the issuing bank on or before the latest date for presentation. As such, there was no obligation for the issuing bank to honour.
Furthermore, it was concluded that UCP 600 article 35 was not applicable for the scenario in this query and the issuing bank was not required to honour an otherwise complying presentation.
For guidance purposes, the Opinion noted that Saturday 18 September was a banking day in the country of the issuing bank.