URR 725

[Ozoda]

Dear All,

Could you pls explain what does the pre-notification and pre-debit notification mean.

I suppose that:

Pre-notification is to be sent by claiming bank to the issuing bank.

Pre-debit notification should be sent by reimbursing bank to issuing bank.


Am I right?

[iLC]

Yes you are correct!

[95shiweihong]

YES YOU ARE CORRECT

[kinkidz]

if the debit notification is given by reimbursing bank ,how come the urr implies the instruction should be included in the L/C which by no means the reimbursing bank will have no knowledge of

[fionawang]

if the debit notification is given by reimbursing bank ,how come the urr implies the instruction should be included in the L/C which by no means the reimbursing bank will have no knowledge of

Sorry I did not get you. Do you mean 'in the L/C by no means the reimbursing bank will know?'

[SHAMEER]

YES YOU ARE CORRECT

Tks and Rgds
MS

[rania]

In my opinion , the pre-debit notification is an agreement between the issuing bank and a reimbursing bank that the latter shall send this notification before debiting the account of the former, therefore a pre-debit notification period will be included in the l/c and not the reimbursement authorization for the claiming bank to know that its reimb. claim will be pocessed within the 3 banking days in addition to that pre-debit notification period, if it's forexample 2 banking days, so, its claim will be processed within 5 banking days.
rgds

[Judith]

if the debit notification is given by reimbursing bank ,how come the urr implies the instruction should be included in the L/C which by no means the reimbursing bank will have no knowledge of

The pre-debit notification arrangement must be given in the LC so that the claiming bank will know that there may be a delay in processing the reimbursement.

For example, if the LC states, “We have a 4 day pre-debit notification arrangement with the reimbursing bank”, the claiming bank should realise that their claim will take 7 banking days to process (and not just 3 days).

[SHAMEER]

THIS ONE LIKE HOW L/C ASK TO INFORM ISSUING BANK MT 754 WHEN U TAKE UP THE DOCS AND CLAIM AS PER L/C RMB INSTCN

Regards,
SM

[rockets]

Yes you are right and the both should be shown in the credit and the authorization respectively