Beneficiary Tips: Complying Presentation

Beneficiary's Guide: Ensuring Bank Honor

To obtain honor from a bank, a beneficiary must make a "complying presentation" of documents. This infographic breaks down the crucial steps and considerations to maximize your chances of success.

1. Complying Presentation is Key

• Strict Adherence: Follow every term of the credit, applicable rules (UCP 600, URDG 758, ISP98), and banking practices.
• Documents, Not Goods: Banks deal solely with documents, not the underlying transaction or goods.

2. Meticulous Document Preparation

• Accuracy & Consistency: All details must be precise and consistent across documents.
• Completeness: Present ALL stipulated documents; even one missing can lead to refusal.
• Language: Documents issued by beneficiary MUST be in the credit's language.
• Amount Claimed: NEVER exceed the credit limit. Inconsistent numbers/words invalidate the demand.
• Signatures & Stationery: Verify all signature requirements and use headed stationery if required.

3. Critical Timing

• Strict Expiry Date: Presentation MUST be on or before the stated expiry date.
• Bank Examination: Banks have up to 5 banking days to examine documents.
• Bank Closures: If expiry falls on a bank closure (not holiday/weekend), it extends to the next banking day.

4. Correct Presentation Logistics

• Right Bank: Present to the NOMINATED or ISSUING bank (or guarantor).
• Advising Bank: An advising bank is NOT sufficient unless also nominated for presentation.
• Mode: Assume paper form unless electronic means are specifically stipulated and authenticated.

5. Understand Bank Obligations & Risks

• Bank's Duty to Honor: A complying presentation obligates the bank to honor.
• Discrepancies: Any discrepancy can lead to refusal.
• Refusal Notification: Bank MUST notify presenter of refusal (with discrepancies) within 5 banking days.
• Fraud Allegations: Require clear evidence or court injunction to stop payment; mere allegation is insufficient.