Sight draft in a negotiation credit

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mohitjai
Posts: 5
Joined: Mon Feb 16, 2015 1:18 am
First Name: Mohit
Last Name: Jain
Organization: Indusind bank
Filter: Two Plus Two =: 4
Location: India

Sight draft in a negotiation credit

Post by mohitjai »

Hi

Want to check if it is possible to have a sight draft in a negotiation credit which has a usance period of day 120 days after BL date? It is necessitated as the supplier is demanding a draft and there are stamp duty implications for the applicant on drawing draft greater than 90 days? Is it allowed as per UCP to have a sight draft in a negotiation credit which has usance payment terms.

Thanks

Mohit
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picant
Posts: 1963
Joined: Wed Aug 20, 2008 1:49 pm

Re: Sight draft in a negotiation credit

Post by picant »

Hi Pal,

I think that for Indian banks it is necessary to build an UPAS credit by involving a Foreign Bank, if the maturity is over 90 days.
However UCP are not requiring draft even if l/c valid by negotiation see definition in art. 2.
Other comments appreciated
Ciao
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