Sun Ming is very happy. She is the owner and operator of a successful cosmetics manufacturing operation (Ming Bright), based in rural New South Wales, Australia. Ming Bright cosmetics are made from pure natural ingredients, featuring Australian native flora. Ming Bright has recently formed a relationship with its first major overseas buyer - Li Feng Cosmetics, a retail outlet based in Shanghai. Li Feng has agreed to buy 500 Ming Bright natural floral lipsticks - assorted shades, and 500 bottles of Ming Bright botanicals skin cream (100 ml per bottle), containing at least 5% Kakadu Plum extract. The contract provides for the delivery of the goods to be on FOB Sydney terms (Incoterms 2020), and the total price agreed is US$10,000. Payment is to be made by letter of credit, to be issued by the Bank of China.

The Bank of China has authorised Austral Bank to act as the advising and negotiating bank. The Letter of Credit instructions, which expressly mention the UCP600, state that the Credit is payable on the presentation of the beneficiary's bill of exchange drawn on The Bank of China, together with the following commercial documents:

• A commercial invoice for 500 natural botanicals lipsticks, 500 containers of 100 ml Ming Bright 5% Kakadu Plum skin cream, and
• A full set of clean on board negotiable marine bills of lading consigned to order and marked 'freight prepaid'.

In addition, the instructions stated that the presentation was to be made within 15 days of shipment and within the validity of the credit'. The goods were shipped on Monday 2 March 2020, and a clean bill of lading was issued. Sun Ming presented the bill of lading, along with a set of commercial documents and the bill of exchange on Friday 13 March. On Friday 20 March, Austral Bank sent a note to Sun Ming refusing payment on the grounds that "the documents (bill of lading, commercial invoice) did not conform to the instructions in the letter of Credit". In response to further queries by Sun Ming, on Tuesday 24 March Austral Bank further explained, that the discrepancies relate to the description of goods on the commercial invoice presented, and the bill of lading. The invoice describes the goods as "500 Ming Bright natural floral lipsticks - assorted shades, and 500 bottles of Ming Bright botanicals skin cream (100 ml per bottle), containing at least 5% Kakadu Plum extract", which the Bank says is not what is required by the Letter of Credit Instructions. In addition, the bill of lading is not marked 'freight prepaid, as required by the Letter of Credit instructions.

When Austral Bank approached The Bank of China to request a waiver of the discrepancies, the Bank of China refused. The reason for the refusal later became clear. Li Feng has a poor reputation because in 2018-2019 it sold a number of products that were harmful to consumers, causing some customers to suffer from severe skin rash and allergic reactions. Because of this poor reputation, Li Feng lost sales and encountered financial difficulties in 2019, and is now nearly bankrupt.

1. Discuss whether Sun Ming has made a complying presentation? Be sure to identify the possible points of discrepancy and non-compliance from the facts and discuss the application of the relevant UCP600 rules and any relevant cases that support your answer. [5 MARKS]