General Principles:
A11: Date in documents
A common area for misinterpretation surrounds the dating of a document in respect of a date of issuance, an effective date or evidence of a date of shipment. ISBP 745, paragraph A11 (a) indicates the requirements where a date is required and A11 (b) where a date may not be necessary due to the content of the document itself.
A12: Dating of documents in relation to the date of shipment
When one or more documents indicate an issuance date later than the date of shipment it is not in itself a reason for refusal of a presentation. Such documents could include, for example, any form of certificate of analysis or inspection, fumigation certificate, phytosanitary certificate, etc.
A13: Precedence between date of issue and date of signing
In most cases, a document other than a transport document and, possibly, an insurance document, will only contain one date and that date will be considered to be the date of issue.
However, there may be occasions when a document bears a date of signing in addition to a date of issue and that date is later than the date of issue. In these circumstances, the date of signing is to be considered as the date the document was issued.
A14: Application of timing phrases
"Not later than 2 days after" designates a latest future date for an action that is linked to a date or event. If the same is to apply to an earlier date, the terms and conditions of the documentary credit should reflect this.
"At least 2 days before" designates a latest past date for an action that is linked to a date or event. It should be noted that such wording does not prohibit the action taking place at any date before that.
When the term "within" is used in connection with a date it excludes that date in the calculation of the period that is applicable. For example, "within 5 days of (date or event)" means a period of 11 days commencing 5 days prior to that date or event until 5 days after that date or event.
The exception is when the term "within" is used in relation to a specific date or reference to a determinable date or event i.e., ‘within the expiry date'; in this event it includes that date.
A15: Interpreting ‘From' and ‘After' when determining maturity dates
The words "from" and "after" are commonly used in a documentary credit when establishing a maturity date or a period for presentation following the date of shipment, the date of an event or the date of a document. Ideally, only the term "after" should be used.
A16: Date format
Dates may be expressed in a number of formats i.e., 18 August 20XX could be shown as 18.08.20XX, 18.08.XX, 20XX.08.18, 08.18.XX, XX0818, etc.
A17: Completion of boxes, fields or spaces within documents
The inclusion within a document of a box, field or space for data to be inserted does not make it a pre-requisite that such part of the document be completed.
A18: Transport documents not covered by the rules in UCP transport articles
There exist a number of documents relating to the transportation of goods that are not transport documents as determined by UCP 600 articles 19-25.
When issuing a documentary credit requesting the presentation of a document such as a forwarders certificate of receipt, certificate of shipment, etc. an applicant and issuing bank should provide full instructions with regard to the issuing entity, the signing requirements (if appropriate) and the data content that is to appear. In the absence of such data, a document will be examined only to the extent specified in the documentary credit, otherwise in accordance with UCP 600 sub-article 14 (f).
A19: Definition of certain terms and of shipping documents
Certain expressions should be avoided when issuing a documentary credit. These may be expressions that are understood by an applicant or issuing bank, and maybe even by a beneficiary, but will they have the same meaning to a nominated bank?
A separate, more detailed blog will be issued on this particular paragraph at a later date.
A20: Identification of document issuing parties
When a documentary credit requires one or more documents to be issued by a named entity, this can be fulfilled in either of two ways.
Firstly, and the more common way, by appearing to be issued by the named person or entity by the use of its letter head; or, secondly, if no letter headed paper is used, when the document appears to have been completed or signed by, or for (or on behalf of) the named person or entity.
For more detailed training material on this subject, refer to the ISBP modules at www.tradefinance.training