Name: Cristian Dobre

Please advise your opinions in the following matter:

An LC has the following details:

Field 45A : Description of goods: GOODS (X&Y) AND SERVICES AS PER CONTRACT.....

Field 44 :Shipment period: see field 47A

Field 47A: Shipment period:
For goods:
- X to be shipped no later than 01.03.08
- Y to be shipped between 02.03.08 - 05.08.08
For services:
latest date for completion of services is 30.03.2009.

Facts:
For first shipment of goods X (full) was late shipment and issuing bank provided the refusal advice accordingly and docs subsequently accepted by applicant

Second shipment of Y goods (full) was on 04.06.08 and issuing bank provided refusal advice as per art. 32 of UCP 600 and docs subsequently accepted by applicant.

My question is, given the structure of the credit as shown above, does the art. 32 apply also for services (given the fact services have no shipment schedule but a latest date for completion)?

Thank you!

In fact article 32 clearly states "drawing or shipment".

A drawing is made either under shipment of goods or under services performed.

See ICC Drafting Group commentary on UCP600.

I do not understand and neither agrees with Drafting Group's commentary.

It is absurd to cease LCs availability for subsequent instalment(s) as a form of penalty applied to beneficiary for delayed drawing/shipment. Furthermore I consider it against LCs principles as any document presentation of an instalment effected after the delayed one can totally comply with LC terms and drawing/shipment be effected within time limit stated under an LC. But a rule is a rule.

Regards,