Bill of Exchange drawn on Importer

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Wai
Posts: 2
Joined: Mon May 04, 2020 7:58 pm
First Name: Wai
Last Name: Wai
Organization: KBZ Bank
Filter: Two Plus Two =: 4
Location: Myanmar

Bill of Exchange drawn on Importer

Post by Wai »

Hi,
I'm a importer in Myanmar. I just have received our shipping documents from exporter through my bank. Exporter draw bill of exchange along with the shipping documents. On draft, the exporter bank, exporter and issuing bank( importer bank) have signed and endorsed. But issuing bank(my local bank) draw a bill of exchange on me with their bank name and logo to accept it.( I mean issuing bank drawn additional one on importer).
Do they really need to drawn bill of exchange again on importer? Exporter have already made one when they send shipping docs.
Bill amount : USD 45,000
Draft drawn on : issuing bank
To the order of : advising bank name
Tenor : 60 days after bill of lading date
Exporter and presenting bank ( advising bank ) sign on the bottom of the draft.

highly appreciated your comments
Wai
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picant
Posts: 1962
Joined: Wed Aug 20, 2008 1:49 pm

Re: Bill of Exchange drawn on Importer

Post by picant »

Hi Pal,

IMHO the bill of exchange that your bank sent to you is smething outside the l/c. The issuing bank need your undertaking to pay in the format of a bill of exchange. Bills of exchange, drafts somewhere need a stamp duty, in case of l/c is the l/c that is trustworthy so ICC decided to insert the deferred payment of documents only.
Frankly every Country and sometime every bank have its own process to issue l/c. However if it is not costly, you may accept the draft.
Other comments appreciated
Ciao
Wai
Posts: 2
Joined: Mon May 04, 2020 7:58 pm
First Name: Wai
Last Name: Wai
Organization: KBZ Bank
Filter: Two Plus Two =: 4
Location: Myanmar

Re: Bill of Exchange drawn on Importer

Post by Wai »

picant wrote: Wed Nov 10, 2021 7:33 pm Hi Pal,

IMHO the bill of exchange that your bank sent to you is smething outside the l/c. The issuing bank need your undertaking to pay in the format of a bill of exchange. Bills of exchange, drafts somewhere need a stamp duty, in case of l/c is the l/c that is trustworthy so ICC decided to insert the deferred payment of documents only.
Frankly every Country and sometime every bank have its own process to issue l/c. However if it is not costly, you may accept the draft.
Other comments appreciated
Ciao
Dear Picant,
Thank a lot for your comments. Well , it is not costly for me. I only wonder why issuing bank need draft again. Your comment is very helpful.

Wai
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