Are the inspection periods for presented documents (claims) the same for standby letters of credit under ISP 98 and UCP 600?
No. Whereas UCP 600 provides for a maximum of five bank working days for documents to be checked or for non-payment of a claim/presentation of the documents to be notified, ISP 98 simply provides for notification within a reasonable period of time. Three bank working days is considered acceptable. If notification is not forthcoming until seven or more bank working days after receipt of the documents, this is deemed to be too late. The judgement as to whether notification is received on time or not (e.g. within four to six bank working days) should depend not least on the number of documents to be checked. In practice, therefore, it is advisable not to exceed three bank working days.
Related Questions
- Are the inspection periods for presented documents (claims) the same for standby letters of credit under ISP 98 and UCP 600?
- Does it matter what language the documents required under a standby letter of credit subject to ISP 98 are written in?
- How has the ICC responded to the problem of a certain incompatibility between UCP 600 and standby letters of credit?
