A·S·R Adjudicated Settlement Record · Worked examples
Trade finance · documentary credit under UCP 600 · worked example on a published judgment, restated at T0
ASR: Does not meet the contract terms assessedHow they compare. Same result as the court. The evidence shows the condition failed; this is not a gap in the evidence. So the ASR records it as not upheld rather than asking for more evidence.
Assessed at presentation, on the documents as presented, before the issuing bank responded. The judgment gives no exact date for this drawing. Nothing later is included: not the refusal notices of November 2008 and not the court's judgment of September 2009.
This claim is made on presentation of the documents, before I has responded. S's presentation under the credit is a complying presentation, including the beneficiary's consolidated certificate required by Field 46A clause 7, so I must honour it.
Documentary credit issued by I in favour of S, expressly subject to UCP 600. Documents required (Field 46A), clause 7: 7. Beneficiary's consolidated certificate certifying: D) THAT THE NEGOTIATING BANK HAS BEEN ADVISED TO DESPATCH ORIGINAL SHIPPING DOCUMENTS ONLY BY AIR COURIER SERVICE TO THE LC OPENING BANK AT OUR COST The issuing bank must honour a complying presentation. Uniform Customs and Practice for Documentary Credits, 2007 Revision (UCP 600), incorporated in the credit. The two articles below are summarised in our own words; they are not the ICC text: Article 14(d), in summary: the data in a presented document do not have to be word-for-word the same as the data in the credit, in that document or in any other required document, but they must not conflict with them. The comparison is made reading the document in context with the credit, the document itself and international standard banking practice. Article 18(c), in summary: a commercial invoice must describe the goods, services or performance in terms that correspond with the description in the credit.
The documents presented by C on behalf of S included S's beneficiary's consolidated certificate, which stated at item D): "D) THAT THE NEGOTIATING BANK HAS BEEN ADVISED TO DESPATCH ORIGINAL SHIPPING DOCUMENTS ONLY BY AIR COURIER SERVICE TO THE LC OPENING BANK AT ISSUING BANK'S COST" The certificate was issued and signed by S.
Does not meet the contract terms assessed in this report: a condition was shown not to be met. Run 3 times with fresh readings; 3 of 3 reached this finding (1 of them referred for review because the separate readings differed).
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Source: Fortis Bank SA/NV & Stemcor UK Ltd v Indian Overseas Bank [2009] EWHC 2303 (Comm). Parties anonymised (S = beneficiary/seller, I = issuing bank, C = negotiating bank). The credit's one-line documentary condition and the certificate's matching line are quoted because the claim turns on their exact words. UCP 600 is ICC copyright. Its articles are not quoted here; they are summarised in our own words, adding nothing the article does not say. Check them against your own copy of ICC Publication No. 600.