UCP 600 - Article 14

Standard for Examination of Documents

a. A nominated bank acting on its nomination, a confirming bank, if any, and

the issuing bank must examine a presentation to determine, on the basis
of the documents alone, whether or not the documents appear on their
face to constitute a complying presentation.

to determine whether
on the basis of the or not the documents is
documents alone complying
 UCP 600 - Article 14
Standard for Examination of Documents

• Document alone

A presentation
otherwise But the Bill of leading evidencing
complying shipment of the vessel Queen Merry.
Alas! Today's News paper reported
that Queen Merry has sunk.
Banker should quote a discrepancy
to stop payment. But can he quote a
discrepancy on the basis of the news
paper?
YES/NO
 UCP 600 - Article 14
Standard for Examination of Documents

• Dose it constitute presentation when

presentation is made to a nominated bank
which does not act on its nomination

YES !
Receipt of documents by a nominated bank that has neither expressly
agreed to honor nor negotiate a complying presentation , nor act on
its nomination , constitute presentation by the beneficiary under the
documentary credit, but dose not obligate the nominated bank to
observe the provision of the sub article 14(a) and 14(b)
 UCP 600 - Article 14
Standard for Examination of Documents

• What dose it mean?

‘On their face’
The concept of ‘on their face’ dose not refer to a simple front versus
the back of the document, but extend to the revue of the data with in
a document in order to determine that a presentation complies with
international standard banking practice and the principles contained in
UCP
 UCP 600 - Article 14
Standard for Examination of Documents

• b. A nominated bank acting on its nomination,

a confirming bank, if any, and
the issuing bank shall each have a maximum of five banking
days following the day of presentation to determine if a
presentation is complying.
• This period is not curtailed or otherwise affected by the
occurrence on or after the date of presentation of any expiry
date or last day for presentation.

Each have maximum five banking days , they can

shall take less than five banking days but can’t take
more than five banking days.
 UCP 600 - Article 14
Standard for Examination of Documents

Presentation A presentation is received by the bank on 26/05/16

Examination (Thursday) at 06.30 pm . Fri day and Saturday are non
deadline banking day ( there are no other holy day). What is the
latest date for examination of documents?
It is mentionable that in our country banking hour is 10.00
am to 60.00pm

Banking Banking
day01 day 03

26/05 27/05 28/05 29/05 30/05 31/05 01/16 02/06 03/06 04/06 07/06

Thus FRI SAT SUN MON TUE WED THU FRI SAT SUN

Day of
Banking Banking
presentation Banking
day02 day 04 day 05
 UCP 600 - Article 14
Standard for Examination of Documents

• This period is not curtailed or otherwise affected by the occurrence

on or after the date of presentation of any expiry date or last day for
presentation

Bank process presentation within normal flow of business transaction

and are not responsible for expediting examination because the
documentary credit is about to expire.
It is the responsibility of the beneficiary to ensure that document are
presented in sufficient time so that if there are correctible
discrepancies, it may have the time to correct this and represent the
documents.
Each have a
maximum of Issuing Bank , Nominated Bank and confirming Bank
five banking all have maximum five banking days separately.
days
 UCP 600 - Article 14
Standard for Examination of Documents

• c. A presentation including one or more

original transport documents subject to
articles 19, 20, 21, 22, 23,24 or 25 must be
made by or on behalf of the beneficiary not
later than 21 calendar days after the date of
shipment as described in these rules,
• but in any event not later than the expiry date
of the credit.
 UCP 600 - Article 14
Standard for Examination of Documents

• Default presentation period 21 days

It would be advisable for the applicant in its documentary credit
application , or the issuing bank issuance of documentary credit, to
provide an indication of the number of days following the date of
shipment within which presentation should be made rather than relying
on the default period that may not meet the requirement of the
underlying transaction.

The sub-article 14(C) only to a presentation which

includes one or more original transport
documents.
 UCP 600 - Article 14
Standard for Examination of Documents
d. Data in a document, when read in context with the credit, the document
itself and international standard banking practice, need not be identical to,
but must not conflict with, data in that document, any other stipulated
document or the credit.
Data in a document, when read in context
 with the credit,
 the document itself and
 international standard banking practice,
need not be identical to, but must not conflict with, data
in
 that document,
 any other stipulated document or
 the credit.
 UCP 600 - Article 14
Standard for Examination of Documents
e. In documents other than the commercial invoice, the description of the
goods, services or performance, If stated, may be in general terms not
conflicting with their description in the credit.

• e. In documents other than the commercial invoice, the description

of the goods, services or performance, If stated,
may be in general terms not conflicting with their description in the
credit.
By using the words ‘if stated’ it emphasizes
that there is no needs for goods description
to appear on every documents.
 UCP 600 - Article 14
Standard for Examination of Documents

“unless the credit stated otherwise, there is no

requirement that a description of the goods ( full
or general terms) must appear on all documents.
However, a bank requires to see some form of
Linkage
linkage between the documents presented
among
and/or the letter of credit terms. A goods
the
documents description , in full or general terms , would be
one means of achieving this”
‘ UCP 600 dose not refer to, require or imply that
linkage is necessary between or among
documents’
 UCP 600 - Article 14
Standard for Examination of Documents

• f. If a credit requires presentation of a document other than a

transport document, insurance document or commercial
invoice, without stipulating by whom the document is to be
issued or its data content, banks will accept the document as
presented if its content appears to fulfill the function of the
required document and otherwise complies with sub-article
14 (d).
 UCP 600 - Article 14
Standard for Examination of Documents

• f. If a credit requires presentation of a document

other than
 a transport document,
 insurance document or
 commercial invoice,
without stipulating by whom the document is to be
 issued or
 its data content,
banks will accept the document as presented
if its content appears to fulfill the function of the required
document
and otherwise complies with sub-article 14 (d).
 UCP 600 - Article 14
Standard for Examination of Documents

Data in a document, when read in

context with the credit, the
document itself and international
standard
Sub-article
14(d) banking practice, need not be
identical to, but must not conflict
with, data in that document, any
other
stipulated document or the credit.
 UCP 600 - Article 14
Standard for Examination of Documents

• g. A document presented but not required by

the credit will be disregarded and may be
returned to the presenter.

A bank can not refuse a presentation on the

basis of a discrepancy in an additional
document (Which is not required by the
credit)
 UCP 600 - Article 14
Standard for Examination of Documents

• h. If a credit contains a condition

without stipulating the document to
indicate compliance with the
condition,
• banks will deem such condition as
not stated and will disregard it.
 UCP 600 - Article 14
Standard for Examination of Documents

A26) When a credit contains a condition without

stipulating a document to indicate compliance
therewith (“non-documentary condition”),
compliance with such condition need not be
evidenced on any stipulated document. However, data
contained in a stipulated document are not to be in
ISBP745 conflict with the non-documentary condition. For
example, when a credit indicates “packing in wooden
cases” without indicating that such data is to appear
on any stipulated document, a statement in any
stipulated document indicating a different type of
packing is considered to be a conflict of data.
 UCP 600 - Article 14
Standard for Examination of Documents

• i. A document may be dated prior to

the issuance date of the credit, but
must not be dated later than its date
of presentation.
 UCP 600 - Article 14
Standard for Examination of Documents

• j. When the addresses of the beneficiary and the applicant appear

in any stipulated document,
• they need not be the same as those stated in the credit or in any
other stipulated document,
• but must be within the same country as the respective addresses
mentioned in the credit.
• Contact details (telefax, telephone, email and the like) stated as
part of the beneficiary's and the applicant's address will be
disregarded.
• However,
• when the address and contact details of the applicant appear as
part of the consignee or notify party details on a transport
document subject to articles 19, 20, 21, 22, 23, 24 or 25,
• they must be as stated in the credit.
 UCP 600 - Article 14
Standard for Examination of Documents

• K. The shipper or consignor of the goods

indicated on any document need not be the
beneficiary of the credit.

The Shipper’s details

may very among
documents.
 UCP 600 - Article 14
Standard for Examination of Documents

• l. A transport document may be issued by any

party other than a carrier, owner, master or
charterer
• provided that the transport document meets
the requirements of articles 19, 20, 21, 22, 23
or 24 of these
 UCP600 Article 15
Complying Presentation

(Art 14)
Examination of Documents

Two Result

Documents are OR Documents are

complying discrepant

To be
To be
dealt by
dealt by
Art 15
Art 16
 UCP600 Article 15
Complying Presentation

• a. When an issuing bank determines that a

presentation is complying, it must honour.
• b. When a confirming bank determines that a
presentation is complying, it must honour or
negotiate and forward the documents to the
issuing bank.
• c. When a nominated bank determines that a
presentation is complying and honours or
negotiates, it must forward the documents to the
confirming bank or issuing bank
 UCP600 Article 15
Complying Presentation

What does when mean?

The word ‘when’ does not mean immediately, but indicates that the
process of honour or negotiation must begin.

Process of presentation
Day of
must begin
presentation

DOP Banking Banking Banking Banking Banking

day 01 day 01 day 01 day 01 day 01
 UCP600 Article 15
Complying Presentation

• a. When an issuing bank determines that a

presentation is complying, it must honour.
• b. When a confirming bank determines that a
presentation is complying, it must honour or
negotiate and forward the documents to the
issuing bank.
• c. When a nominated bank determines that a
presentation is complying and honours or
negotiates, it must forward the documents to the
confirming bank or issuing bank
 UCP600 Article 15
Complying Presentation
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• a. When a nominated bank acting on its

nomination, a confirming bank, if any, or the
issuing bank determines that a presentation does
not comply, it may refuse to honour or negotiate.
• b. When an issuing bank determines that a
presentation does not comply, it may in its sole
judgment approach the applicant for a waiver of
the discrepancies. This does not, however, extend
the period mentioned in sub-article 14 (b).
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

c. When a nominated bank acting on its nomination, a confirming bank, if

any, or the issuing bank decides to refuse to honour or negotiate, it must
give a single notice to that effect to the presenter.
The notice must state:
i. that the bank is refusing to honour or negotiate; and
ii. each discrepancy in respect of which the bank refuses to honour
or negotiate; and
iii. a) that the bank is holding the documents pending further
instructions from the presenter; or
b) that the issuing bank is holding the documents until it receives a
waiver from the applicant and agrees to accept it, or receives further
instructions from the presenter prior to agreeing to accept a waiver; or
c) that the bank is returning the documents; or
d) that the bank is acting in accordance with instructions previously
received from the presenter.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• d. The notice required in sub-article 16 (c) must be given by

telecommunication or, if that is not possible, by other expeditious means
no later than the close of the fifth banking day following the day of
presentation.
• e. A nominated bank acting on its nomination, a confirming bank, if any,
or the issuing bank may, after providing notice required by sub-article 16
(c) (iii) (a) or (b), return the documents to the presenter at any time.
• f. If an issuing bank or a confirming bank fails to act in accordance with
the provisions of this article, it shall be precluded from claiming that the
documents do not constitute a complying presentation.
• g. When an issuing bank refuses to honour or a confirming bank refuses
to honour or negotiate and has given notice to that effect in accordance
with this article, it shall then be entitled to claim a refund, with interest, of
any reimbursement made.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Overview of UCP 600 Article 16

Article 16 – Discrepant Documents, Waiver and Notice
 Nominated/Confirming/Issuing bank may refuse to honour or negotiate
discrepant documents
Issuing bank, in its sole judgment approach applicant for waiver
Notice of refusal must be given no later than close of the fifth banking
day following day of presentation
Failing to act in accordance with this article precludes the bank from
claiming the presentation does not comply
After providing notice of refusal
-The bank may return documents to presenter at any time
- Issuing bank or confirming bank may claim refund for any
reimbursement made, with interest
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Overview of UCP 600 Article 16

• Single Notice of Refusal must state
the bank is refusing to honour or negotiate,
each discrepancy in respect of the refusal, and
one of the following:
The bank is holding documents pending presenter’s further
instructions
The issuing bank is holding documents until it receives waiver
from applicant and agrees to accept it, or receives further
instructions from presenter prior to agreeing to accept the
waiver
The bank is returning the documents
The bank is acting in accordance with instructions previously
received from the presenter
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

When a nominated acting on its nomination, confirming

Sub Art- bank, if any, or the issuing bank determine that a
16(a) presentation dose not comply, it may refuse to honour or
negotiate

When an issuing bank determines that a presentation

does not comply, it may in its sole judgment approach
Sub Art-
16(b)
the applicant for a waiver of the discrepancies. This does
not, however, extend the period mentioned in sub-
article 14 (b).

‘The rule [16(b)] only applies to the issuing bank,

because it is only the issuing bank having a direct
relation with applicant of the credit.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Is the issuing bank is obliged to approach the applicant?

A request from a beneficiary, confirming bank or nominated bank for

the issuing bank to approach the applicant for a weaver dose not place
an obligation on the issuing bank to do so.

Non-extension of time period mention in Sub- Article-14(b)

Even if the issuing bank approach the applicant for a weaver, this dose
not extend the maximum five banking days period following the day of
presentation to determine compliance of presentation as well as for
giving notice of refusal to the presenter.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Important Timelines (UCP 600 14, 15 and 16)

• Document Examination
Max. 5 banking days following the day of presentation
Complying Presentation
When an issuing bank determines that a presentation is
complying, it
must honour
Refusal:
Notice of refusal by the close of the fifth banking day following
the day of presentation
 UCP600 Article 16
Discrepant Documents, Waiver and Notice
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

Sub-Art-16(C). When a nominated bank acting on its nomination, a

confirming bank, if any, or the issuing bank decides to refuse to honour or
negotiate, it must give a single notice to that effect to the presenter.
The notice must state:
i. that the bank is refusing to honour or negotiate; and
ii. each discrepancy in respect of which the bank refuses to honour
or negotiate; and
iii. a) that the bank is holding the documents pending further
instructions from the presenter; or
b) that the issuing bank is holding the documents until it receives a
waiver from the applicant and agrees to accept it, or receives further
instructions from the presenter prior to agreeing to accept a waiver; or
c) that the bank is returning the documents; or
d) that the bank is acting in accordance with instructions previously
received from the presenter.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

Sub-Article 16(C) details the specific step to be taken by a nominated bank

acting on its nomination, a confirming bank, if any and an issuing bank
when providing a notice of refusal

• A single notice stating:

 that the bank is refuse to honour or negotiate
 each discrepancy ;
 disposal information the document [one of options
listed in sub-art (iii)]
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• ‘Each discrepancy’ What dose it mean?

It is not sufficient to list one discrepancy or to give a

partial list if more than one discrepancies found. The list
must be complete and be specific as to the reason
each is considered to be a discrepancy. Discrepancies
such as ‘Invoice not as per LC’ or ‘conflict between
documents’ would not be considered to be specific
reason for refusal.’
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

Disposal of the discrepant documents[16c(iii)]

. a) that the bank is holding the The bank will waiting for an instruction
documents pending further from the presenter to dispose the
instructions from the presenter documents.
b) NEXT NEXT
c). that the bank is returning the Documents are returned.
documents;
d) that the bank is acting in As part of the presentation of the
accordance with instructions documents, presenter may give
previously received from the instructions for handling of discrepant
presenter. documents.
The bank is acting as per instruction.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

b) that the issuing bank is holding the documents until it

receives a waiver from the applicant and agrees to accept
it, or receives further instructions from the presenter prior
to agreeing to accept a waiver;
This option is for the issuing bank only .

The issuing bank will dispose the documents

based on whether the waiver or the instruction
from the presenter are received first.

Applicant waiver is subject to issuing banks

acceptance
 UCP600 Article 16
Discrepant Documents, Waiver and Notice
 UCP600 Article 16
Discrepant Documents, Waiver and Notice
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Sub-Art 16(d) . The notice required in sub-

article 16 (c) must be given by
telecommunication or, if that is not possible,
by other expeditious means no later than the
close of the fifth banking day following the
day of presentation.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• Sub-Art 16(e). A nominated bank acting on its

nomination, a confirming bank, if any, or the
issuing bank may, after providing notice
required by sub-article 16 (c) (iii) (a) or (b),
return the documents to the presenter at any
time.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• f. If an issuing bank or a confirming bank fails

to act in accordance with the provisions of this
article, it shall be precluded from claiming that
the documents do not constitute a complying
presentation.
 UCP600 Article 16
Discrepant Documents, Waiver and Notice

• g. When an issuing bank refuses to honour or

a confirming bank refuses to honour or
negotiate and has given notice to that effect in
accordance with this article, it shall then be
entitled to claim a refund, with interest, of any
reimbursement made.
 UCP 600 - Article 17
Original Documents and Copies

a. At least one original of each document stipulated in the credit must

be presented.
b. A bank shall treat as an original any document bearing an apparently
original signature, mark, stamp, or label of the issuer of the
document, unless the document itself indicates that it is not an
original.
c. Unless a document indicates otherwise, a bank will also accept a
document as original if it:
i. appears to be written, typed, perforated or stamped by the
document issuer's hand; or
ii. appears to be on the document issuer's original stationery; or
iii. states that it is original, unless the statement appears not to
apply to the document presented.
 UCP 600 - Article 17
Original Documents and Copies

d. If a credit requires presentation of copies of

documents, presentation of either originals or
copies is permitted.
e. If a credit requires presentation of multiple
documents by using terms such as "in duplicate",
"in two fold” or "in two copies", this will be
satisfied by the presentation of at least one
original and the remaining number in copies,
except when the document itself indicates
otherwise.
 UCP 600 - Article 17
Original Documents and Copies
Sub-Art 17(a). At least one original of each document stipulated in the
credit must be presented
It sets the general condition regarding the presentation of documents and
stats the position that at least one original of each documents stipulated in
the credit must be presented,
if there is no requirement in the credit that how many original and copy
would be presented. If there has an indication regarding number of original
document, it must be as per credit.

ISBP745
a. The number of originals to be presented is to be at least
(A29) the number required by the credit or UCP 600
 UCP 600 - Article 17
Original Documents and Copies

b. When a transport document or insurance

document indicates how many originals have been
issued, the number of originals stated on the
document is to be presented, except as stated in
paragraphs H12) and J7) (c).
ISBP745
c. When a credit requires presentation of less than
a full set of original transport documents, (for
example, “2/3 original bills of lading”), but does
not provide any disposal instructions for the
remaining original bill of lading, a presentation may
include 3/3 original bills of lading.
 UCP 600 - Article 17
Original Documents and Copies

A30) a. When a credit prohibits the presentation

of an original document by stating, for example,

“photocopy of invoice – original document not

acceptable in lieu of photocopy” or the like, only a
photocopy of an invoice or an invoice marked copy
ISBP745
is to be presented.

b. When a credit requires the presentation of a

copy of a transport document and indicates a
disposal instruction for all originals of that
document, a presentation is not to include any
original of such document
 UCP 600 - Article 17
Original Documents and Copies

H12) An air transport document is to appear to be

the original for consignor or shipper. When a credit
requires a full set of originals, this is satisfied by the
presentation of an air transport document
indicating that it is the original for consignor or
ISBP745 shipper.
J7C). Presentation of the original for consignor or
shipper (copy for sender) of a road transport
document or duplicate rail transport document
shall suffice even when the credit requires
presentation of a full set of the relevant transport
documents
 UCP 600 - Article 17
Original Documents and Copies

b. A bank shall treat as an original any document

bearing an apparently original signature, mark,
Article17(b) stamp, or label of the issuer of the document,
unless the document itself indicates that it is not
an original.

For example ‘a documents bearing original

signature but there is a notation ‘copy, on the
face of the document’
Is it an original?
 UCP 600 - Article 17
Original Documents and Copies

A27) A document bearing an apparently original

signature, mark, stamp or label of the issuer will
be considered to be an original unless it states
that it is a copy. Banks do not determine whether
such a signature, mark, stamp or label of the
ISBP745
issuer has been applied in a manual or facsimile
form and, as such, any document bearing such
method of authentication will satisfy the
requirements of UCP 600 article 17
 UCP 600 - Article 17
Original Documents and Copies

A28) Documents issued in more than one

original may be marked “Original”, “Duplicate”,
ISBP745 “Triplicate”, “First Original”, “Second Original”,
etc. None of these markings will disqualify a
document as an original
 UCP 600 - Article 17
Original Documents and Copies

c. Unless a document indicates otherwise,

a bank will also accept a document as original
if it:
i. appears to be written, typed, perforated or
Article stamped by the document issuer's hand; or
17(C)
ii. appears to be on the document issuer's
original stationery; or
iii. states that it is original, unless the
statement appears not to apply to the
document presented
 UCP 600 - Article 17
Original Documents and Copies

d. If a credit requires presentation of copies of

documents, presentation of either originals or
copies is permitted.
e. If a credit requires presentation of multiple
Article 17 documents by using terms such as "in duplicate",
"in two fold” or "in two copies", this will be
satisfied by the presentation of at least one
original and the remaining
number in copies, except when the document
itself indicates otherwise.
 UCP 600 - Article 17
Original Documents and Copies

d. When a credit requires, for example, presentation of:

i. “Invoice”, “One Invoice”, “Invoice in 1 copy”

or “Invoice – 1 copy”, it will be understood to
ISBP745 be a requirement for an original invoice.
ii. “Invoice in 4 copies” or “Invoice in 4 fold” will
be satisfied by the presentation of at least
one original invoice and any remaining
number as copies.
 UCP 600 - Article 17
Original Documents and Copies

iii. “photocopy of invoice” or “copy of invoice”

will be satisfied by the presentation of either a
photocopy, copy or, when not prohibited, an
original invoice.
ISBP745
A29) d. iv. “photocopy of a signed invoice” will be
satisfied by the presentation of either a
photocopy or copy of the original invoice that
was apparently signed or, when not prohibited, a
signed original invoice
 UCP 600 - Article 17
Original Documents and Copies

”except when the document itself indicates

otherwise.”
A credit requires presentation of bill of
lading in triplicate.
Article17(e)
The bill of lading include a statement-
”Issued in 03 originals”

In this case all the originals must be

presented to comply