Beneficiary Send Doc Directly To Issuing Bank Bypassing Conf

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suryasusanto
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Beneficiary Send Doc Directly To Issuing Bank Bypassing Conf

Post by suryasusanto » Sat Jun 15, 2013 4:45 pm

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

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mohiuddin
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Bene Send Doc Directly to Issuing Bank Bypassng conf

Post by mohiuddin » Sun Jun 16, 2013 11:31 am

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

nemishjain
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yes

Post by nemishjain » Sun Jun 16, 2013 1:33 pm

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.

suryasusanto
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UCP Clause that says that

Post by suryasusanto » Mon Jun 17, 2013 8:52 am

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.
Dear Nemishjain,

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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mohiuddin
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Find FAQ of Gary Collyer

Post by mohiuddin » Mon Jun 24, 2013 12:03 pm

You please checked it FAQ of Gary Collyer.

Mohiuddin

abrar
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Bypass

Post by abrar » Tue Jun 25, 2013 1:15 am

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 .

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