Pre-advice LC and non-operative LC and Bank Certificate

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Pre-advice LC and non-operative LC and Bank Certificate

Postby Cindy Lin - on Thu Jul 21, 2011 9:59 pm

HI,..Urgent answer needed.

Can an expert assist to clarify if Pre-advice LC can be in the form of Bank Certificate confirming the amount of value to cover goods payment?

Can Pre-advice LC be as Non-operative LC?
A Pre-advice LC is always send by the bank by Swift, correct? and not in other ways.

WHere can I check on the article of above terms?



thank you/Cindy

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Cindy Lin
 
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Pre-advice

Postby abrar - on Fri Jul 22, 2011 2:41 pm

Article 11 of UCP600 refers

I am not sure what the "Bank Certificate" is intended to cover, but provided there is clear indication of the brief details of the LC and statetement to the fact that the LC is to be issued in due course, the certificate would serve the purpose of a "pre-advice"

If the LC is to be issued on a non-operative basis, the pre-advice may still be issued, because it is assumed that the pre-advice would identify that the LC will be issued on non-operative basis.

The pre-advice may also be sent by mail

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idda

Postby ida - on Sat Jul 23, 2011 8:20 pm

Hi Cindy,
As per UCP 600 art 11, that if a teletransmission states "full detail to follow", the teletransmission will not be deemed to be the operative credit or amendment. it means that if you have received a pre adviced credit, you can assume it is a non operative credit.
The preadviced credit is used to give early notice to beneficiary that a documentary credit is ready to issued.
After issued preadvice crdit an Issuing bank is irrevocebly committed to issue an operative credit which not in consistance with the preadvices
.
regards
Ida

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ida
 
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