UCP600 Article 29 Explained
Clause (a)
Clause: “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.”
Explanation: If the expiry date of a credit or the final day for document presentation coincides with a day when the bank is closed for reasons not covered under Article 36 (such as public riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control), the deadline is automatically extended to the next business day when the bank is open.
Example: A letter of credit expires on 1st January. The bank where the documents are to be presented is closed on 1st January for New Year’s Day (a public holiday), which is not falling under reasons covered in Article 36 (such as public riots, civil commotions, insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control.) Therefore, the expiry date is extended to 2nd January, the next business day.
Clause (b)
Clause: “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).”
Explanation: When documents are presented on the first business day following an extended deadline, the nominated bank must include a statement on its cover schedule indicating that the presentation occurred within the extended time frame as per sub-article 29(a).
Example: Documents are presented to the nominated bank on 2nd January (following the extended deadline). The nominated bank must state on its covering schedule to the issuing bank, “Documents presented within the extended time limits as per UCP600 Article 29(a).”
Clause (c)
Clause: “The latest date for shipment will not be extended as a result of sub-article 29 (a).”
Explanation: The provision to extend the expiry date or the last day for document presentation does not apply to the latest date of shipment. The shipment date remains fixed and unchangeable even if the presentation deadline is extended.
Example: A letter of credit specifies the latest shipment date as 25th December, and the presentation deadline as 1st January. If the presentation deadline is extended to 2nd January due to the bank being closed, the shipment must still occur by 25th December, without extension.
Summary
Article 29 of UCP600 addresses situations where the expiry date or the last day for document presentation falls on a non-banking day for reasons other than those mentioned in Article 36. It extends the deadline to the next banking day but does not affect the shipment date. Proper documentation and statements are required to inform all parties of the extended deadlines.