TF

Open Account Payment

The exporter ships goods on open account basis and the overseas buyer
makes payment on periodic basis but in any case not later than 6 months in
respect of any single shipment. In other words, the payment made by the
overseas buyer will not be on bill to bill basis but periodic lump sum basis.
However once in 6 months the accounts are reconciled and the settlement is
made.
1. What is meant by Open account transaction?
What are FEMA Guidelines for:
1. The period within which an export bill is required to be realized?
3. The document under which the goods are released to the overseas buyer
under the Open Account system(Direct Sale or Sale on Consignment basis)?
 Answer
1. Under Open account system, the exporter will supply the goods on a
continues basis to the overseas buyer.
2. Normally an export bill is required to be realized within the period as
mentioned below:
Exporter other than 100%EOU/units in EPZ : 9 months from date of
Shipment
Exporter who are 100%EOU/units in EPZ : 12 months from date of
shipment
Exports to India owned Warehouse : 15 months from the date of
shipment
3. Trust Release. The foreign Bank through whom the documents are routed
is instructed to release the documents under ‘Trust Release’ The overseas
buyer agrees to settle the bill less the expenses supported by account sales
Receipt of Advance Payments
1. Is there any limit for receiving advance payment
towards the exports to be made?
2. What is the time limit within which the export is
required to be completed after receiving the advance
remittance?
3. In case, the exporter is unable to complete the
export for any reason, whether the advance
remittance can be returned to the overseas buyer?
4. If the overseas buyer is expecting interest on the
advance remittance at the time of refund, whether it
can be paid?
5. Whether you can handle export documents of an
exporter if advance remittance is received through
some other Bank?
1. No limit. Advance payment to be received through
normal banking channels
2. 12 months from the date of receipt of advance
payment
3. Yes, if the exporter requests for refund before 12
months from the date of receipt of advance
remittance. If requested after 12 months from the
date of receipt of advance remittance, specific
permission from RBI is required
4. Yes permitted. Max interest permitted is LIBOR +
100bps
5. Yes. FIRC (Foreign Inward Remittance Certificate)
issued by the Bank through whom the remittance is
received is required. If EDF states other Banks name,
no objection from that Bank is required.
 Advance Remittance by Importers
1. Can you remit advance remittance towards 1. Yes. Advance remittance on behalf of clients can be
imports on behalf of your clients? remitted. Permitted up to USD 200,000/- or
equivalent. If more than USD 200,000/- International
Bank guarantee required
2. Can we remit advance remittance without any value 2. In case of Public sector undertakings limit USD
limit? 100,000 or equivalent. If more than USD 100,000
International bank Guarantee required. If no
Guarantee is available, permission from Ministry of
Finance is required.
For import of Air craft, limit without Guarantee is USD
50 million. However permission from DGCA is required
3. What documents will you scrutinize before making 3. Documents: IEC / Proforma Invoice / NNL
the advance remittance towards imports? declaration or Import Authorization / FEMA
declaration / Form A-1 / clients request letter signed
by authorized signatory.
 LC mechanism
1. Whether Exporter can be sure of getting payment for
their exports merely on receiving a letter of credit?
2. Who makes the payment under the letter of credit?
Overseas buyer (Applicant) or the Bank (LC opening Bank)
3. What is the responsibility of the exporter (Beneficiary /
seller) who exports the goods on receiving the export letter
of credit?
4. Whether the exporter’s Bank (Negotiating Bank) will
finance (read negotiate the bill) the exporter on the export
bill drawn under a letter of credit?
5. If the payment is not received by the exporter’s Bank
after having negotiated the export bill, whether the bank
can recover the amount from the exporter?
1. No. Exporter(Beneficiary) can expect to receive the
payment only if all the terms and conditions under the LC
are satisfied
2. The Bank who has opened the LC (Opening bank) will
have to make the payment whether or not the overseas
buyer (Applicant) makes the payment
3. The exporter has to fulfil all the terms and conditions as
stipulated in the LC
4. Yes. This is called, Negotiation of export bills under LC.
This facility is provided to the exporter by the Exporter’s
Bank (called as Negotiating Bank)
5. The Bank will recover the amount from the Exporter,
since the Negotiation of export bill is normally done with
recourse to the exporter.
RBI regulations regarding approved methods of payment towards exports:
Foreign currency notes / Foreign Currency travelers cheques /
cheques drawn in Foreign Currency payable abroad on personal account of the overseas buyer
1. Whether payment towards exports can be 1.Payment out of NRE / FCNR account is approved
made out of NRE/NRO/FCNR account holder of the method.Payment out of NRO account is not approved
overseas buyer? method
2. Whether a cheque issued in Foreign Currency 2.Yes cheques issued in foreign Currency payable abroad
payable abroad on the personal account of the on the personal account of the overseas buyer is treated
overseas buyer can be accepted as payment towards as approved method of payment towards exports on
exports? realization of the cheque amount.

3. Whether payment in Foreign Currency Cash,
Foreign Currency Traveler’s Cheques can be accepted as
payment towards exports during the personal visit of
the overseas buyer?
3. Payment in FCN / FCTC made by the overseas buyer
during the personal visit to the exporter. Currency
Declaration Form (CDF) to be taken by the exporter from
the overseas buyer wherever applicable.
FCN + FCTC exceeds USD 10,000 or equivalent, or
FCN exceeds USD 5000 or equivalent
2.
M/s. Supreme Traders is one of the Current account holders of your branch with
satisfactory transactions. Mr. Suraj, the proprietor of the firm, deals in Ready Made
garments. He has recently entered into export trade.
His brother, Mr. Gautham, who is a US citizen and has a retail unit in Boston, USA,
is one of the very good buyers of Ready Made Garments from M/s. Supreme
Traders
On a visit to India, Mr. Gautham, calls on your branch with Mr. Suraj, to deposit Rs.
100,000 towards payment of one of the pending export bills drawn by M/s.
Supreme Traders. He informs that the cash of Rs. 100,000/- is drawn out of your
Banks ATM buy using International debit card issued by CITI Bank New York. He also
deposits the ATM slip along with the cash.
Mr. Gautham also has a branch office in Mumbai. The Branch office in Mumbai
enjoys overdraft facilities with ABN Amro Bank Mumbai. Mr. Gautham desires to
pay advance amount of Rs. 500,000/- to M/s. Supreme Traders by way of a cheque
drawn on the overdraft account of the branch office drawn on ABN Amro Bank.
Answer

1. Yes, cash drawn through ATM by using International Debit Card

can be accepted as approved method of payment towards exports.
However, a certificate to be obtained from service provider (The Bank
whose ATM was used) that the reimbursement is received in
convertible currency
2. Payment towards exports cannot be accepted by way of a
cheque drawn by the local branch office of the overseas buyer on their
overdraft account
 Advance Payment received by other Banks.
Shyam Exports, your esteemed customer present to you an export bill
for USD 50000 for further processing. On scrutiny of documents and
from the client’s covering letter you find that the Exporter has received
100% advance payment through State Bank of India.
Ans:1.Normally in case of an export bill handled your Bank, the payment
has to be received through your bank
2.At times the payment may come through other bank, particularly in
case of overdue export bills, (as also in case of advance payment
towards exports, where the payment is received through other Bank and
subsequently export bill is handled by your Bank)
3.Foreign inward Remittance Certificate (FIRC) issued by the Bank
receiving the remittance must be insisted upon. Validity of FIRC is 12
months from the date of issue
 Uniform Rules for Collection
M/s. One Exports is one of the exporters of your branch, exporting leather garments to Singapore.
All their export bills have been paid promptly. They have given an export bill for USD 150,000
payable at 60 days from the date of Draft. The exporter in their request letter has advised you to
collect interest for 60 days at the rate of 3% p a You have sent the documents to OCBC Singapore for
collection. The collection schedule (subject to URC-522) sent by you to OCBC is silent regarding
collecting Bank Charges as well as the Interest for the usance period if refused by the drawee.
You have received the payment of USD 149750 from OCBC Singapore with the break up as follows:
Bill amount : USD 150,000
Int. paid by the Drawee: nil
Less our Charges USD 250
Net amount paid USD 149750
M/s. One exports is displeased that the Bank has failed to recover the interest of USD 750 (interest
at 3% p a for 2 months) as also agreed to the Collecting Bank’s charges of USD 250 from the
proceeds.
Answer
As per URC-522:
1. If the Remitting Bank’s (your Bank is the Document Remitting Bank)
collection schedule is silent whether or not interest can be waived if
refused by the Drawee, the Collecting Bank (OCBC in the above case)
can waive the interest.
2. If the Remitting Bank’s collection schedule is silent whether or not
the Collecting Banks charges may be waived if refused by the Drawee,
the Collecting Bank will waive the charges and recover the same from
the proceeds of the Bill
Documents required from the exporter.
1.Duplicate copy of EDF form if export through non EDI port/SDF -
Exports through ports computerized. SOFTEX – export of software
(statutory document)
2.Bill of Exchange (finance document)
3.Bill of Lading / Airway Bill (transport document)
4.Insurance policy/certificate (insurance document). Broker note
acceptable. (Insurance document is required in case of C&F, CIF
contracts)
5.If available - Packing list, inspection certificate, quality certificate,
certificate of analysis, etc., (commercial document)
6.If export against LC, original LC with all the amendments and the
covering letter of the LC advising Bank
 Types of LC
M/s. Paramount Exports, a partnership firm, is an exporter client of your branch. They have received
an export Letter of Credit (subject to UCP-600) through SWIFT for an amount of USD 160,000 advised
by SBI. The LC provides for release of USD 25000 against execution of a simple receipt by the
beneficiary – M/s. Paramount Exports and is a transferable LC.
The LC is desired to be utilized by the exporter client as well as by 3 sister concerns belonging to the
exporter firm. Mr. Paramesh, the managing partner calls on your branch and shows the original LC to
you and seeks your advice whether the LC meets with the requirement of the exporter client.
On scrutiny of field at 41 a, it is stated as ‘SBI Mumbai’ by negotiation
Further, M/s. Paramount Exports desires to open A LC for USD 90,000 in favour of a supplier of the
goods in Canada, on the strength of the export LC received by them.
Questions:
1. Whether the LC received by M/s. Paramount Exports meets with their requirements? Will you
credit an amount equivalent of USD 25000 on execution of a simple receipt by M/s. Paramount
Exports?
2. Whether your branch will be able to negotiate documents if tendered to you against this LC? Can
you transfer a part of the LC to the sister concerns at the request of M/s. paramount Exports?
3. Whether you will open a LC favoring the supplier in Canada on the strength of the Export LC
opened by the exporter?
Answer
1. To meet the exporter’s requirement, the LC must be a
TRANSFERRABLE LC. The LC must clearly state that it is a transferrable
LC. Yes the negotiating Bank can claim the amount of USD 25000 by
forwarding the ‘Receipt’ executed by M/s. Paramount Exports. The
amount will be paid on receiving the credit from the LC opening Bank.
This kind of LC providing for a certain portion of the LC amount in
advance is called as RED CLAUSE LETTER OF CREDIT
2. The LC received by M/s.Paramount Exports is a RESTRICTED LC (field
41 a, only SBI Mumbai is nominated to negotiate under this LC). You
cannot transfer the LC since the Bank which is nominated to transfer (or
to negotiate) only can transfer the LC
3. Yes. Your Bank can open a LC favouring the supplier in Canada on the
strength of Export LC received by M/s. Paramount Exports. The LC so
opened is called BACK TO BACK LC
Export packing credit
1.EPC can be granted against a firm order,LC,declaration of an exporter
to submit the firm order.
2.For procuring the Raw Materials, Processing, manufacturing, packing
and exporting the goods.
2. Normally 10 to 20% margin on the fob value of the exports as per
Banks discretion.
3.The exchange rate used is a notional rate advised by the Dealing Cell
which is calculated on the bases of an average of Bill Buying rates for the
last week. Such rates are general rates and used for all EPC requests.
3. Packing credit to be cleared by purchase/ discount / negotiation of
the relative export bill or by providing ‘Rupee Advance’ against the bill
 EPC in Foreign Currency
Presently the firm is enjoying pre-shipment / post shipment limits at rate of interest
of 12.5% p. a. The exporter is having substantial revenues in Foreign exchange
particularly in USD. The Chief Accounts officer of the firm is seeking your advice as
to how to reduce the impact of interest rates
The exporter is looking for Pre-shipment and post shipment finance at competitive
interest rates.
1. Whether the bank has any product so as to reduce the impact of interest rates
on the firm?
2. What will be the interest rate on such a product?

1. Packing Credit in Foreign Currency (PCFC) is made available to exporters at a very

competitive interest rates.
2. The interest rates on PCFC is related to international reference rates like LIBOR/
EURIBOR / EURO LIBOR. The margins are as decided by the Bank. For instance, 3.5%
over 6 months LIBOR for PCFC in USD.
 Post Shipment Finance
M/s. Ridhima Exports Pvt. Ltd. Is an exporter firm exporting electrical appliances to Singapore. They have recently
opened their current account with you. Their export turnover in the last year has been around Rs.2 crores and
they expect a growth rate of about 40% every year in the next 5 years. All their export bills are paid promptly and
as on date there are no overdue export bills payable.
The firm has submitted the following export bills to you at 11 am today and request as follows:
1. Purchase of Export bill for USD 55000/- payable at sight
2. Discount of Export bill for Sing Dollars 65000/- payable at 90 days sight
They request you to provide the credit in their Current account immediately.
1.Whether the Bank can purchase these Bills? If not, what is the pre-condition for purchasing such Bills?
2.What type of credit facilities are required for granting advance for procuring the Raw Materials, Processing,
manufacturing, packing of the product to be exported? What is the facility which is required to liquidate such
loans?
3.What is the difference between the Purchase of Export Bill / Discount of Export bill?
4. What is the exchange rate applicable in respect of the above two export bills?
5. Whether the Bank has to recover interest at the time of Purchase / Discount of the export Bills?
6. Whether the Bank will refund interest (in case of early realization) or charge additional interest (in case of
delay in realization) on the date of realization?
7.In case of return of the export bills unpaid, what is the rate at which the export bill liability will be recovered
from the current Account?
 Answer
1.Bank cannot purchase export bills generally without setting export finance limits.
After proper appraisal of the requirements,the limits are setup by the Bank for
preshipment and postshipment stages of exports.
2. For procuring the Raw Materials, Processing, manufacturing, packing of the product
to be exported the facility is called Export Packing Credit and it is normally adjusted by
Post Shipment Advance.
3. Export bill payable at sight is purchased and Export bill payable after the usance
period is discounted.
4. The exchange Rate: Sight Bill – Bill buying Rate, Usance Bill – Forward Rate
3. Yes, The Bank will recover upfront, interest on the rupee equivalent up to the
Normal Transit Period (sight Bill) / Notional Due Date(Usance Bill) as stipulated by
FEDAI
4. Yes.
5. The export bill liability will be recovered at the T T Selling Rate.
Rupee Advance/Loan against Foreign Bills sent on Collection Basis

To provide a loan of Rs. 25, 00,000 against an export bill handled by you last week.
You have already sent the export bill to Citi Bank New York, your NOSTRO
Correspondent, for collection. The export bill is for USD 50,000 payable in USA.
1.What is the difference between “Rupee Advance “and “Purchase or Discount “of
Export Bill?
2. What is the exchange rate applicable when the Bank decides to provide Rupee
Advance against an export bill already handled on collection basis
3. Normally under what circumstances, an exporter may resort to taking ‘Rupee
Advance ‘instead of going in for Purchase or Discount?
4. Whether Rupee Advance can be treated as Export finance from the RBI’s point
of view?
5. Where a Bank has given ‘Rupee Advance’ to an exporter and if the export bill is
returned unpaid, what is the exchange rate applicable for recovery of the Rupee
Advance?
Answer:Rupee Advance/Loan against Foreign Bills sent on Collection Basis
1. Rupee Advance : Exporter has no obligation to the Bank in Foreign
Currency Purchase/Discount : Exporter has obligation to the bank in
Foreign Currency
2. No exchange rate is applicable. Only a reference rate is taken for
arriving at the loanable amount
3. If the exporter feels that the Exchange rate on the date of realization
of the bill will be more advantageous compared to Bill
Purchase/Discount rate, the exporter may decide to go in for ‘ Rupee
Advance
4. Yes
5. Exchange Rate not applicable since the exporter’s liability is only in
INR unlike in Purchase/Discount where the exporter’s liability is
essentially in Foreign Currency
 Foreign Letter of credit (FLC)
M/S Mindgames are importers of Gaming Systems from Japan. They are
maintaining a satisfactory current account for last five years. The average
purchases of systems in the last 3 years is Rs. 340 lakhs, out of which import
from china is to the extent of Rs. 194 lakhs. The firm gets a credit period of 30
days and the lead time required is 30 days. The overseas supplier who was
supplying the goods and sending the documents on collection basis, is now
insisting on LC for supply of goods.
The CEO of the firm approaches you for FLC limit of Rs. 40 lakhs and submits all
the documents, projections, financial statements prescribed by you.
1. What do you understand by lead time?
2. Is the firm eligible to get a non fund based limit(FLC) of Rs.40 lacs?
3. What is the liability of the Bank under the FLC limits granted to a customer?
4. How does the bank secure its position in respect of FLC liability?
Answer
1. Lead Time: Period between placement of an order and receipt of the ordered
good(s).
2. Factors that are normally considered (other than the usual factors considered
for fixing credit limits) for fixing FLC limits are :
a)Lead period
b)Credit period given by the supplier of the goods
FLC limit required = [(Purchases under FLC / 365)*Lead time +credit period]
= (194/365)*(30+30)
= 31.89 say 32 lakhs
Customer is eligible for a credit limit of Rs.32 lacs and not Rs.40 lacs.
3. At the time of issue of the FLC, it is a contingent liability for the Bank. It
becomes a fund based liability as soon as the documents are submitted to the LC
Opening Bank and the payment is made by the opening Bank after finding the
documents fulfilling the terms of LC.
4. The bank takes adequate securities (Primary and Collateral) including Cash
Margin before opening the FLC.
 UCPDC:Art-3
1. As per Article3 of UCPDC, ‘on or about’ is to be interpreted that an event is to occur during a period of 5
calender days before , until 5 calender days after the specified date, both start and end dates included.
Example: The LC terms include “The shipment is to be done on or about 31/10/2014.” The shipment was done on
4/11/2014 as per Bill of Lading. The documents are given to the negotiating bank for negotiation within the LC
period. Discuss whether the documents can be treated as clean and negotiated or to be treated as discrepant and
sent on collection basis. Answer:The document is in order. Can be negotiated if other terms of LC are satisfied.
2. The terms ‘beginning’ , ‘middle’ and ‘end’ of a month shall be construed respectively as the 1st to 10th, 11th to
20th , 21st to the last day of the month , all dates inclusive.
Example: “The shipment is to be done in the middle of October 2014.” The shipment was done on 19/10/2014 as
per Bill of Lading. Is this in order? Answer: Yes
3. “first half and second half” of a month shall be construed respectively as the 1st to 15th and 16th to last date
of the month, all dates inclusive.
Example:The shipment was done on 15/02/2014 as per Bill of Lading. The documents are given to the negotiating
bank for negotiation within the LC period. The desk officer negotiated the bill, but the LC opening bank rejected the
document stating there is discrepancy in the document. Discuss. Answer: LC opening banks rejection is in order.
UCPDC-Art 4,5
Article 4 – On Credits Vs Contracts – A credit by its nature is a separate
transaction from the sale or other contract on which it may be based.
Banks are in no way concerned with or bound by such contract, even if
any reference of whatsoever to it is included in the credit. Hence, the
overseas buyer cannot stop payment under the LC by making a
reference to the sale agreement.
Article 5 – Banks deal with documents and not with goods, services or
performance to which the documents may relate.
 UCPDC-Art 4,5 Case Study
M/s Natwar Singh & Brothers, Ludiana entered into a sale agreement with M/s
Anderson and Inc, USA for export of a particular quality of basmati rice to M/s
Anderson and Inc. One of the conditions in the said agreement stipulate that the
goods will be returned, at the cost of the exporter , by the overseas buyer in case
the quality of goods do not confirm to the one mentioned in the sale agreement.
The usance LC is opened by the overseas bank on behalf of M/s Anderson and Inc
in-favour of M/s. Natwar Singh & Brothers. Before the payment is due under the
LC, the overseas buyer approached the bank with a request that payment should
not be made against the bills negotiated, on the ground that the quality of rice do
not confirm to the agreement. Discuss.
Solution:No, the LC opening bank cannot accept the customer’s request.Article 4 –
The overseas buyer cannot stop payment under the LC by making a reference to
the sale agreement.Article 5 – Banks deal with documents and not with goods,
services or performance to which the documents may relate. Hence it’s clear as per
this article also that the LC opening bank can’t reject the payment on the ground of
inferior quality of goods.
 UCPDC – Art-29:expiry date of LC and last day for presentation.
Article 29 (a) – If the expiry date of credit or the last day for presentation falls on a day
when the bank to which presentation is to be made is closed for reasons other than Force
Majeure, the expiry date or the last date for presentation, as the case may be, will be
extended to the first following banking day.
Case Study: M/s Rama and Company from Delhi is exporting green pepper to an overseas
buyer in Germany. The LC expires on 21st October 2014. Due to Diwali banks in India
have holidays on 21st, 22nd and 23rd October 2018. M/s Rama and Company shipped the
goods on 22nd October 2018 and submitted the documents for negotiation on 24th
October. The negotiating bank negotiated the documents. But the LC opening bank
rejected the claim quoting discrepancy- “1)LC expired and 2)Late shipment”
a) Whether LC opening bank is in order in rejecting the documents submitted by M/s.
Rama and Company?
b) What steps should have been taken by the exporter to avoid this situation?
c) What advice should have been given by the negotiating bank to M/s Rama and
Company when documents are presented for negotiation?
 Solution:Art-29:expiry date of LC and last day for presentation.

a) The first reason is not in order as per Article 29 (a) – If the expiry date of credit or
the last day for presentation falls on a day when the bank to which presentation is to be
made is closed for reasons other than Force Majeure, the expiry date or the last date for
presentation, as the case may be, will be extended to the first following banking day.
The Bank should have given a certificate in the bill covering schedule stating that Oct. 21,
22, 23, were bank holidays – Documents submitted within the validity of LC

The second reason is in order as per Article 29 (c ) – The latest date for shipment will not
be extended.
b) The exporter should have asked for amendment in LC terms well in time to
extend the date of shipment.
c) As the bank is supposed to know the implications of Article 29 ( c), the exporter’s
bank should have advised the exporter to send the documents on collection basis.
 1.UCPDC - Transferable Letter of Credits
2.UCPDC – description of goods in Commercial Invoice
1.As per Article 38 (d) – A transferable credit can be transferred to number of
second beneficiaries but can not be transferred at the request of a second
beneficiary to any subsequent beneficiary.
Article 38 (k), Presentation of documents by or on behalf of a second beneficiary
must be done to the transferring bank.
2.UCPDC – Description of goods in Commercial Invoice
As per UCP-600 , the description of goods, services or performance in a
commercial invoice must correspond with that appearing in the credit.
Example: LC indicates the goods as Basumati Rice but the invoice submitted by
the exporter to the Bank reads the description as Basmati Rice: In this case the
description differs. (The invoice shall be prepared giving the description as
appearing in the LC and there after any additional description can be given.)
Issuing Bank can treat it as a discrepancy.
UCPDC - Bill of Lading & airway bill – Date of Shipment and
transhipment
M/s Surajmal Metha & Co., the diamond exporter from Surat, has an order for export
of diamond valued USD100000, to be shipped through Air. LC is explicit that
transhipment not allowed. The shipment is to be done during first half of October
2014. The Air Way Bill indicates the date as 16/10/2014 as date of issuance of Airway
Bill. (Printed at the top). However the flight number and date box shows AW2017
flight dated 15/10/2014.
Besides the Airway bill has a printed clause indicating the transhipment will or may
take place.
The negotiating bank negotiated the documents. But LC opening bank rejected the
same citing the following discrepancies:

i) The Date of Shipment not complying with LC

ii) The Airway Bill indicates transhipment while transhipment not permitted.
If shipment is made through sea instead of air , how will you deal with the situation.
The BL with similar dates are submitted instead of AWB.
Solution:UCPDC - Bill of Lading & airway bill – Date of Shipment and
transhipment
Article 23 a iii) An air transport document, however named, must appear
to indicate the date of issuance. This date will be deemed to be the date of
shipment unless the air transport document contains a specific notation of
the actual date of shipment, in which case the date stated in the notation
will be deemed to be the date of shipment .
Regarding transhipment , as per UCP600, an air transport document
indicating that transhipment will or may take place is acceptable , even if
the credit prohibits transhipment.
b) In case of BL , LC opening Bank can’t reject the documents as both
the discrepancies mentioned will not be valid – as an on board notation
indicating the date on which the goods have been shipped on board is
acceptable . When such a date is affixed in the space provided the said
date is accepted as date of shipment. The printed date at the top of BL is
irrelevant.
UCPDC-Period for examination of the documents by Issuing
Bank/Confirming Bank/Nominated Bank

As per UCP600, the issuing bank shall have a maximum of 5 banking days
following the day of presentation to determine if a presentation is complying.
A nominated bank or issuing bank will have to examine documents within five
banking days. As per Article 14(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.