Mr. Old Man For those who eat, sleep and breathe Letters of Credit & Cycling
Period for presentation.
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I read your articles online and your answers to some questions regarding the L/Cs.
I have a question:
If the shipment transit time is short, like 4-5 days and field 48 says 21 days to present the documents from the date of the BoL, we lose free 7 days’ time of port to release the shipment and maybe end up paying demurrage due to discrepancies in the documents but within 21 days from the BoL date.
So the question is, due to short shipment transit time, given the above scenario how can we as consignee avoid the demurrage?
Kind regards,
———-
Field 48 (period for presentation) specifies the number of calendar days after the date of shipment within which the documents must be presented for payment, acceptance, or negotiation. The absence of this field means that the presentation period is 21 days after the date of shipment, where applicable.
So, if you wish a shorter period for presentation, e.g., 10 days after the date of shipment you can request the issuing bank to issue LC to indicate the same in field 48.
If LC was issued with a 21 day period for presentation, you can request the issuing bank to amend the LC with a shorter period. In case no amendment is made and the goods arrive before documents, to avoid demurrage you can request the issuing bank to issue a shipping guarantee in favor of the shipping company to enable you to receive the goods.
Mr. Old Man
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June 27, 2022 at 8:43 am
Appreciate if u could assist me. Details of LC 1. Field 40A – Transferable. 2. Field 45A THIS IS A TRANSFERABLE LETTER OF CREDIT. THE TRANSFER, IF REQUIRED MUST BE MADE THROUGH THE ADVISING BANK WHO IS REQUESTED TO ADVISE US THE UNIT TRANSFERRED AND THE TRANSFEREE’S NAME. Questions 1. Are the two details above sufficient of an LC to be viewed as Transferable. 2. 5 items are allowed to be transferred in a Transferable LC. But as per field no 45A, does this means only Units that will be transferred, the rest of the 4 items remains the same?
June 27, 2022 at 1:32 pm
1/ An LC can be transferred when Field 40A states Transferable. 2/ It can be trasferred as per sub-article 38 (g), that is to say, the rest items may be reduced or curtailed
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Passages The International Trade Blog
The hidden expiration date on every export letter of credit.
However, another date equal in importance is referred to as the last date for presentation. The presentation period—the window of time in which the exporter must present documents—is tied to the ship date as indicated in the original transport document.
Letter of Credit Presentation Period
A letter of credit includes terminology similar to “documents must be presented within 10 days after the bill of lading date but within the validity of the letter of credit.” For example, if the shipment took place on January 1, documents must be presented no later than January 11 or the expiration date if earlier. If the expiration date is January 5, documents must be presented by January 5, not the 11th.
Some letters of credit require a presentation period of seven days, some 15, etc. If the letter of credit does not state a presentation date, the exporter has 21 days according to UCP Article 14c. Exporters should be aware of this requirement and feel confident they can work within the stated time period. If not, they should request an amendment.
Why does a letter of credit include these time requirements? The importer stipulates them because a delay in presentation can create problems. When the goods arrive at the customs entry point, the importer needs the documents to clear the goods. If not cleared in a timely manner, the goods will go into storage and incur daily charges.
With a short presentation period, the importer can force the exporter to deliver the documents to the bank quickly. Once the documents enter banking channels, they will find their way to the importer in due time for customs clearance.
An alert exporter, however, must ask several key questions:
- How quickly after shipment can the documents be assembled and presented to the bank?
- Can unusual situations cause delays?
- Can the consular's signature be obtained (for a specific country) within the time limit?
Some consulates are located in distant cities and only sign documents once a week. If the appointed day for signing documents falls on a holiday, in either country involved in the transaction, then one more week must be added to the time frame. While 10, 15 or even 21 days may seem like adequate time, it can slip away quickly.
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This article was first published in December 2014 and has been updated to include current information, links and formatting.
About the Author: Roy Becker
Roy Becker was President of Roy Becker Seminars based in Centennial, Colorado. His company specialized in educating companies how to mitigate the financial risk of importing and exporting. Previous to starting the training company, Roy had over 30 years experience working in the international departments of several banks where he assisted many importers and exporters with the intricate banking needs associated with international trade.
Roy served as adjunct faculty in the International MBA programs at the University of Denver and University of Colorado in Denver. He conducted seminars at the World Trade Center Denver and The Center for Financial Training Western States, and was a guest lecturer at several Denver area Universities.
Roy retired in 2021.
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- What is Letter of Credit
IMAGES
VIDEO
COMMENTS
Field 48: Period for Presentation: DEFINITION This field specifies the period of time after the date of shipment within which the documents must be presented for payment, acceptance or negotiation. USAGE RULES The period of time is expressed in number of days. The absence of this field means that the presentation period is 21 days, where ...
Examples of Presentation Date in a sentence. A holder shall be entitled to present a Note or Coupon for payment only on a Presentation Date and shall not, except as provided in Condition 4, be entitled to any further interest or other payment if a Presentation Date is after the due date.. In order to receive the relevant Share Amount in respect of a Security, a Securityholder must deliver to a ...
F48 (Period of Presentation) field defines the period of time in calendar days by which the presentation of documents should be made in the negotiating bank. ... (Date and Place of Expiry). The date can be mentioned 7,10,14,21 any days as agreed between buyer and seller but not later than the LC expiry date. If the field is not mentioned in the ...
The absence of this field means that the presentation period is 21 days after the date of shipment, where applicable. So, if you wish a shorter period for presentation, e.g., 10 days after the date of shipment you can request the issuing bank to issue LC to indicate the same in field 48.
The International rules for letters of credit, known as the Uniform Customs and Practice for Documentary Credits (UCP), state, "A credit must state an expiry date for presentation" (Article 6d).It is relatively easy to find the expiry date in the letter of credit. However, another date equal in importance is referred to as the last date for presentation.
Examples of Date of Presentation in a sentence. For each presentation, provide: a) Course name b) Presentation title c) Class instructor d) Date of presentation. For each presentation, provide: a) Conference title b) Presentation title c) Date of presentation. Article 87 Date of presentation of applications for payment and payment delays 1.. Respondent For use in Appellate Tribunal's office ...
Related to Payment Presentation Date. Presentation Date means a day which (subject to Condition 12 (Prescription)):. Representation Date shall have the meaning ascribed to such term in Section 4(k).. Investor Presentation is defined in Section 5.3.. Lender Presentation means the Lender Presentation dated July 12, 2016, relating to the Credit Facilities and the Transactions.
Expiry date of the letter of credit is 15.February.2019. The letter of credit is silent in regards to the presentation period, which means that there is no Field 48 -Period for Presentation indicated in the letter of credit. Option 1: Letter of credit does not ask for a presentation of a transport document:
Latest Date of Shipment: Latest date of shipment is an optional information and not every letter of credit issued in swift format contains a latest date of shipment. Latest date of shipment can be meaningful only if the letter of credit requests presentation of a transport document. No transport document, no meaning of the latest date of shipment.
An offer presentation date is a specific date and time set by the listing agent and listing brokerage to review all received offers from potential buyers. ... to sell their property quickly and potentially avoid the uncertainty of waiting until the scheduled presentation date. However, accepting a bully offer means foregoing the opportunity to ...