Dear experts,
I have a LC that involved three banks, Issuing, Beneficiary and Confirming Bank. Since the fund of the Issuing bank is held by the confirming bank, I was informed by my ben's bank to send the documents to Confirming Bank and the Confirming Bank will send directly to Issuing Bank. My question is, can actually beneficiary's bank send the shipping documents directly to issuing bank? will it not jeopardize the Clause in LC? Your Immediate response is highly appreciated. Thanks.
Regards,
S.S
Beneficiary Send Doc Directly To Issuing Bank Bypassing Conf
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Bene Send Doc Directly to Issuing Bank Bypassng conf
Dear,
IMO, Yes that happened, There is no restriction if beneficiary sent document directly to the LC issuing bank. If bene do it, than LC issuing bank check with Add Confirming bank avoiding for duplication. After received message form Add confirming bank LC issuing bank made payment.
Other comments appreciated
Mohiuddin
IMO, Yes that happened, There is no restriction if beneficiary sent document directly to the LC issuing bank. If bene do it, than LC issuing bank check with Add Confirming bank avoiding for duplication. After received message form Add confirming bank LC issuing bank made payment.
Other comments appreciated
Mohiuddin
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yes
It is very much possible to send the documents directly to issuing bank bypassing the confirming bank. but this step will render the confirmation null and void and bene cannot go back to confirming bank if issuing bank refuses to pay.
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UCP Clause that says that
Dear Nemishjain,nemishjain wrote:It is very much possible to send the documents directly to issuing bank bypassing the confirming bank. but this step will render the confirmation null and void and bene cannot go back to confirming bank if issuing bank refuses to pay.
So, what are you trying to say that it is possible for the beneficiary's bank to send the shipping documents directly to Issuing bank. However, it will null and void any obligation to pay from the Confirming bank. May I know any clause in UCP or any other international regulation where it is written like that? Your immediate response is highly appreciated. Thanks.
Regards,
Surya Susanto
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Find FAQ of Gary Collyer
You please checked it FAQ of Gary Collyer.
Mohiuddin
Mohiuddin
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Bypass
This has been addressed before. Sub-art 7 b emphasises that the IB always remains liable and under sub-art 8 a, the CB is engaged only if compliant documents are presented to it. The confirmation is provided only for the beneficiary's benefit. If the beneficiary chooses not to avail the confirmation by not presenting to the CB and instead present to the IB that is the beneficiary's right. This is a beneficiary's fundamental right as per the direct contract between it and the IB. Any additional banks involved are present only to facilitate. This principle should not require any support from UCP or FAQ .