Module: | MODULE A: INTERNATIONAL BANKING
Q109: Consider the following statements regarding Courier and Postal Receipts under a Letter of Credit:
Statement 1: A courier receipt evidencing the dispatch of goods must indicate the name of the courier service and appear to be stamped or signed by the named courier service.
Statement 2: The exact date of pick up or the date of receipt explicitly indicated on the courier receipt will be legally deemed to be the date of shipment.
Statement 3: If a credit requires a courier receipt, the bank will automatically reject a receipt from a globally recognized courier unless that specific courier name was explicitly written in the credit.
Statement 2: The exact date of pick up or the date of receipt explicitly indicated on the courier receipt will be legally deemed to be the date of shipment.
Statement 3: If a credit requires a courier receipt, the bank will automatically reject a receipt from a globally recognized courier unless that specific courier name was explicitly written in the credit.
✅ Correct Answer: A
The correct option is A. Only 1 and 2 are correct.Concept Definition: For small, highly valuable items like diamonds, integrated circuits, or critical legal documents, sellers often use international courier services or postal services instead of massive ocean freight companies.Structural Breakdown: Instead of an ocean bill of lading, the seller presents a courier receipt or a postal receipt to the bank.The bank must simply verify that a legitimate service took physical possession of the package on time.Historical/Related Context: Article 25 dictates exactly how banks process these specific receipts.Unlike ocean vessels, couriers do not use complex on board notations.They merely provide a time stamped receipt showing exactly when they collected the box from the seller.Causal Reasoning: Statement 1 is correct.The document must prove which company took the goods and must bear their official stamp or signature to prevent forgery.Statement 2 is correct.The date the courier service acknowledges receiving the package is legally established as the date of shipment for the purposes of the Letter of Credit deadlines.Statement 3 is incorrect.The rules state that unless the Letter of Credit specifically demands a particular courier company, a receipt issued by any legitimate courier service is perfectly acceptable to the checking bank.