Name: Jinugu Ravi Kumara

Article 32 states "If a drawing or shipment by instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped within the period allowed for that instalment, the credit ceases to be available for that and any subsequent instalment."

My query is in case a presentation is made as per the shipment schedule however it is discrepant in the sense that the quantity is not as per schedule. In such a case, would the LC be available for subsequent drawings. Since article 32 only speaks about the drawing irrespective of the fact that the drawing is not as per LC.

My opinion is that refused discrepant presentation means no drawing was
made... (No shipment). The article is not well written in respect of this
issue.

Pavel

Dear Jinugu Ravi Kumara

As far as I can see the article is (at least in theory) clear in the sense that the question is if the “instalment is drawn or shipped within the period allowed”. I would not consider this article to apply in the case where the quantity (or other issues related to the goods/invoice) are not complied with.

That being said – it is practically impossible to answer this question in any general way – as any answer will be so closely linked to the specific wording/structure of the LC vis-à-vis the presentations made.

Best regards

Kim