Seller Asked For Amendment Because Of Bank's Wording

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Seller Asked For Amendment Because Of Bank's Wording

by aom71 » Fri Jun 02, 2017 8:22 am

Hi all,

Today we received email from seller that they want us to amend bank wording in no.78 and the cost of amend will be applicant's account.

By the way we've followed lc instruction seller sent to us and this wording is from the bank standard format and the seller want to use their wording which I don't think it's different meaning but they explained as per below.

Do you agree that this amendment cost because bank standard wording will be buyer's account?
Is it really different meaning?

Pls kindly help comment. Thank you.

L/C payment instruction:
Negotiating bank must advise us to the attention of treasury dept/import dept by swift of the bills negotiated 3 working days before reimbursing themselves from our A/c as indicated in field 53.

Our requested payment instruction:
Negotiating bank is authorised to claim reimbursement from reimbursing bank at sight, via authenticated swift for value 03 banking days from the date of negotiation certifying that all terms and conditions of this credit are complied with and must inform credit issuing bank on negotiation date through authenticated swift message details of total amount and value date.

The difference is that L/C is at sight, so negotiating bank has the right to claim reimbursement at sight (immediate) and not as per LC stated -> negotiated 3 working days before reimbursement.

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by Fajar » Tue Jul 11, 2017 9:44 am

regarding the cost for amendment, I think its come down to the agreement between seller and buyer.

as an issuing bank, you need to ask for applicants approval for any matters related fee and charges, because when issuing bank issued credit or amendments, the content of it is solely depends on applicant request to issuing bank.

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by picant » Fri Jul 14, 2017 11:15 am

Hi Pals,

in paper version of documentary credit, reimbursing instructions were for nominated bank and not sent to beneficiary. So the problem was for banks and not involving sellers and buyers.
IMHO a MT799 may be sufficient!!

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