UCP 600 - Article 29

A document scrutinizer starts document scrutiny with four basic checks which are listed below:

·         LC Expired

·         LC Overdrawn

·         Late Shipment

·         Late Presentation

Article 29 of UCP-600 provides some exceptional coverage on expiry and latest date for presentations.


UCP 600 - Article 29

a. If the expiry date of a 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 those referred to in article 36, the expiry date or the last day for presentation, as the case may be, will be extended to the first following banking day.

An expiry date and place are indicated in field “31d” of the credit, in case that applies at the counters of the issuing bank then that issuing bank must receive the documents no later than that expiry date of the credit, however, if that expiry date is not a banking day in the issuing bank’s country due to any national holiday or weekends then in that case, the expiry date will be extended to the next banking day. Reason given in article 36 are “force majure” and does not apply in this case.

Same applies to the presentation period as well indicated in field “48” of the credit, and requires that the documents must be presented to the issuing bank within the applicable presentation period and a presentation period can only be extended to the next banking day in case of any national holiday or week off or any other holiday apart from reason of “force majure”.

Example: a credit expires in the country of the issuing bank on dated 19-June 20xx ie also the latest date of the presentation, However, 19-June-20xx is Saturday in issuing bank’s country and bank remains close, in that case a presentation can be made on next banking day dated 21-June-20xx Monday and will deemed to be presented within the credit validity and not be considered as late presentation as well.

b. If presentation is made on the first following banking day, a nominated bank must provide the issuing bank or confirming bank with a statement on its covering schedule that the presentation was made within the time limits extended in accordance with sub-article 29 (a).

In case sub-article 29(a) applies and documents are being presented on the next banking day then presenter must need to notify the issuing bank or confirming bank (as the case may be where documents are to be presented) with a statement on its covering letter that the presentation could not be made due to closer of your bank on last day of presentation or expiry of the credit and it is well within the time limits as per sub-article 29(a).

c. The latest date for shipment will not be extended as a result of sub-article 29 (a).

Sub-article 29(a) does not provide exemption for latest date of shipment, considering the same above example, if goods are shipped on dated 20-June-20xx Sunday, will be considered as “late shipment”, even though not being treated as late presentation or expired credit as presentation happens on dated 21-June-20xx Monday due to holiday on 19 and 20-June-20xx (Saturday and Sunday) ie also expiry date and latest date of presentation.

Basically, an expired credit is non-existent credit, however, practically banks treat that as discrepancy.

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Chandan Kumar Yadav
My name is Chandan Kumar Yadav CDCS, CSDG, CITF, PGDIBO,AML-KYC, CCFE, MLIBF, CSF, 6SIGMA a trade finance professional with an experience of 11 years whereas worked with several stages of letter of credit, bank guarantee and on other payments methods of trade transactions such as documentary collection, open accounts, SBLC etc., I have a fair understanding of Trade Based Money Laundering as well, Blogging related to Trade Finance is my passion and I want to share which I know and learn from others, I have worked with Wells Fargo, Yes Bank Limited and Bank of America, India which helped me to gain knowledge, view of Trade Finance and importance of International Trade in world's economy. Trade Finance is thumping product, everyday we are learning something new so in order to keep learning I started this as one of the platform. . Let's Learn Together

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