Dear,
LC clause 'doc will not be negotiate before 10 days after shipment;
But doc received with the 10 days and we point out the discrepancy but presenting bank refuse our discrepancy and the reason is 'we did not negotiate the documents and we only present the document' and we are presenting bank.
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My question is my discrepancy is valid or not..
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Please guide.
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Rgds.
Zaki
Document Will Not Be Negotiate Before 10 Days After Shipment
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ZAKI
- Posts: 3
- Joined: Fri Apr 05, 2013 1:21 pm
- First Name: zaki
- Last Name: uddin
- Organization: HMB
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mandeep
- Posts: 43
- Joined: Tue Apr 30, 2013 2:07 pm
- First Name: mandeep
- Last Name: maharjan
- Organization: laxmi bank ltd
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negotiation of documents
Dear Zaki,
please note that there is difference in term 'negotiate' and 'collection'. negotiation means purchase of the documents, which means providing money to the supplier before receiving payment from applicant through LC issuing bank. collection means simply sending documents under collection, and payment to seller is made only after receipt of payment from applicant through LC issuing bank.
under your clause mentioned 'doc will not be negotiate before 10 days after shipment; does not restrict presenter bank to send document under collection. hence, your discrepancy is not valid.
thanks
please note that there is difference in term 'negotiate' and 'collection'. negotiation means purchase of the documents, which means providing money to the supplier before receiving payment from applicant through LC issuing bank. collection means simply sending documents under collection, and payment to seller is made only after receipt of payment from applicant through LC issuing bank.
under your clause mentioned 'doc will not be negotiate before 10 days after shipment; does not restrict presenter bank to send document under collection. hence, your discrepancy is not valid.
thanks