Why Draft Is Not Drawn On Applicant Under UCP?

mijanlt23004 · Post by **mijanlt23004** » Tue Jan 20, 2015 11:42 pm

Why Draft is not drwan on Applicant under UCP?

picant · Post by **picant** » Thu Jan 22, 2015 3:45 am

Hi Pal,

draft in many Countries are subject to stamp duties, the credit they represent is already in the l/c.
draft is a mere way to state the receipt of money.
If in your Country there is a need to have a draft on applicant, you may insert a draft in the "documents required list"
Other comments appreciated
Ciao

shinzzang · Post by **shinzzang** » Thu Jan 22, 2015 8:53 am

abrar · Post by **abrar** » Sun Jan 25, 2015 5:41 pm

The main reason for disregarding drafts drawn on the applicant is because the applicant is not a party to the LC; it is a commitment by the bank to the beneficiary and therefore the requirement by the beneficiary to impose an obligation on the applicant to pay (by acceptance of the draft) is redundant

hardy2175 · Post by **hardy2175** » Mon Jan 26, 2015 4:36 pm

Draft is not drawn on the applicant in case of an LC as it is the obligation of the bank and not the applicant to pay the complying docs. The whole point of an LC is that commitment of the applicant is not sufficient otherwise a simple DA/DP collection would have sufficed.

GUBAZ · Post by **GUBAZ** » Wed Jan 28, 2015 1:45 pm

The main reason fr drafts drawn on the applicant is because the applicant is not a party to the LC

harlanadinata · Post by **harlanadinata** » Tue Feb 03, 2015 9:47 am

Clearly described in UCP art 2, Applicant is not a party to LC
.
Regards

Why Draft Is Not Drawn On Applicant Under UCP?

Why Draft Is Not Drawn On Applicant Under UCP?

Draft

thanks

Drafts

DRAFT NOT ON APPLICANT IN CASE OF LC

DRAFT

Applicant is not a party