We received Dox under collection URC 522 Rule on DA(Acceptance) bases. which were accepted by the drawee to make payment on due date.we sent the swift to exporter bank that "dox are accepted by drawee and we will remit the proceed on due date upon availability of funds from importer". on due date importer didnt make pmt to bank.
Now after two years, exporter's bank send us swift and claimed all unpaid Doxs.
how its possible in DA collection?
pls reply me in the light of URC522 Rule what we should do now?? who is liable for pmt?
Ur urgent reply will be appreciated.
Most Urget: Pls Reply Soon
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- picant
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Details
Hi Pal,
normally in D/A, the draft is drawn on buyer.
Then after acceptance the collecting bank will state: it is holding the accepted draft for payment at maturity.
If unpaid, at maturity, the collecting bank will inform the remitting bank, following the instructions given in case of dishonour, protest or other.
So normally the liability is to follow such instructions.
Please check if the drawee in the draft is your bank too.
Let me know
Ciao
normally in D/A, the draft is drawn on buyer.
Then after acceptance the collecting bank will state: it is holding the accepted draft for payment at maturity.
If unpaid, at maturity, the collecting bank will inform the remitting bank, following the instructions given in case of dishonour, protest or other.
So normally the liability is to follow such instructions.
Please check if the drawee in the draft is your bank too.
Let me know
Ciao
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urc522
URC522 Article 26c3 states to the effect that presenting bank should endeavour to ascertain the reasons for non-payment and/or non-acceptance and advise accordingly without delay, the bank from which it received the collection instruction. Also presenting bank should send without delay advise of non-payment and advise of non-acceptance to the bank from which it received the collection instruction. On receipt of such advice from the presenting bank the remitting bank should give appropriate instructions as to the further handling of documents. If such instructions are not received within 60 days after its advice of non payment the documents may be returned to the bank from which colection instruction was received without any further responsibility on part of rhe [presenting bank.
So you have it vry clearly spelt out in the URC 522 - the responsibility of the presenting bank does not arise if there was a proper adviceof non payment.
More views welcome - interesting to note what the presenting bank's position should be in case such advice of non-payment was not given to the remitting/collecting bank.
So you have it vry clearly spelt out in the URC 522 - the responsibility of the presenting bank does not arise if there was a proper adviceof non payment.
More views welcome - interesting to note what the presenting bank's position should be in case such advice of non-payment was not given to the remitting/collecting bank.
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DA Acceptance
Dear Sir,picant wrote:Hi Pal,
normally in D/A, the draft is drawn on buyer.
Then after acceptance the collecting bank will state: it is holding the accepted draft for payment at maturity.
If unpaid, at maturity, the collecting bank will inform the remitting bank, following the instructions given in case of dishonour, protest or other.
So normally the liability is to follow such instructions.
Please check if the drawee in the draft is your bank too.
Let me know
Ciao
Thanks for ur reply,
we didn't receive Bill of exchange from beneficiary or bank.
- picant
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pay attention...
Hi Pals,
by which buyer's undertaking you have delivered the documents?
Let me know?
Ciao
by which buyer's undertaking you have delivered the documents?
Let me know?
Ciao
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OUR BE Format
We take undertaking of buyer on BE (drawn on importer to the order of our bank ) from our own ends.But its clear that BE not received from Bene's bank along with other shipping dox.picant wrote:Hi Pals,
by which buyer's undertaking you have delivered the documents?
Let me know?
Ciao
i pasted BE here:''.............
BILL OF EXCHANGE
US$ 15,500.00
Dated: October 04, 2012
DRAWN UNDER OUR IMPORT CONTRACT NO. ..... DATED 11-07-2012
AT 90 DAYS FROM BILL OF LADING DATE (26-09-2012) DUE DATE DECEMBER 25, 2012 OF THIS SOLE BILL OF EXCHANGE PAY TO THE ORDER (Our Bank NAME )VALUE RECEIVED.
USD 15,500
USD (AMOUNT IN WORDS)
DRAWN ON
(IMPORTER NAME)
For And Behalf of
OUR BANK
Please ans according to ....