We received LC confirmed by a foreign bank (other than issuing and beneficiary country).
As per our agreement with out client, all banking charges are on account of applicant. Including confirmation charges.
Under field 71B it clearly states all charges outside exporters country are on account of applicant, including confirmation charges. But under the confirming bank's conditions, they insist they will deduct confirmation charges and other transaction charges from their proceeds.
Is this not contradicting with field 71B? How can clarification be sought?
Thanks.
Confirming Bank Wants To Deduct Charges From Beneficiary
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faizansheikh
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Balajikas
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confirmation charges
As per original lc confirmation charges are to applicant. You need to clarify the same to conforming bank. Moreover confirmation is added by a foreign bank at the request of the issuing bank. So charges to be borne by instructing party. In case confirmation charges are to beneficiary's account they must inform the same to beneficiary before adding confirmation.
Balaji. Kas
Balaji. Kas