Best Trade Solution

Dear Experts,

We have received letter of credit which reads tenor and drawee as follows
47A: TT reimbursement prohibited

Tenor:90 Days from bill of lading date
Drawee:Reimbursing bank

we have received presentation where draft states drawee as issuing bank instead of Reimbursing bank. We understand from the lc conditions that draft must be sent to reimbursement bank (LC specifically restrict tt reimbursement). However in this case reimbursing bank is nothing to do with the draft as it was drawn on issuing bank.

1. Can we claim reimbursement thorough TT despite the lc conditions
2. Hope the reason behind URR 725 allows to send claim thorugh ''mail '' Where the reimbursing bank does not have swift key arrangement

Regards
Dinesh

Dear Experts,

All opinions are welcome.

Regards
Dinesh

Hello Dinesh,

In my opinion, you can contact the presenter and inform them to present an additional draft that is drawn on Reimbursing bank. Upon receipt of the same, a mail claim can be sent to reimbursing bank.

In case you claim by TT, there are chances that the claim might get rejected due to the fact that the MT740 which the reimbursing bank possess would contain the drawee field as their name.

Hope this clarifies.

Cheers!!

Rajesh

bene need to change the draft as reimb bank cannot accept the draft not drawn on itself. As far as TT reimb is concerned, bene must ask for amendment.