Available By Payment At Time Draft

[khratha]

Hi All,

Is it possible to draft LC as below:

41A: Available With...By... - FI BIC
Any Bank
BY Payment
42C: Drafts at...
90 DAYS AFTER TRANSPORT DOC.DATE
.
I understand that by payment means sight payment and it is in accordance with UCP600 article 3 the definition of honor. Available with any bank by payment at time draft is not a best practice.
.

How about below LC draft:

41A: Available With...By... - FI BIC
Issuing bank
BY Payment
42C: Drafts at...
90 DAYS AFTER TRANSPORT DOC.DATE
.
It is possible right?

Your comment is highly appreciated.

Regards

[picant]

Hi Pal,

UCP 600 have been worded in the way that a translation from English to Italian or to Chinese must correspond to the translation from Italian to Chinese(just for exemple)
So it is very dangerous to mix what is simple clear.
By payment, means by payment at sight, now possible with any bank too.
Drafts may be presented in case of time negotiation or, if required, in case of deferred payment, even if it is possible on the sole documents. Acceptance naturally needs drafts.
In your case it is a deferred payment l/c, you must rely on the l/c undertaking and not to a draft.
Than drafts attract fiscal duties in many Countries and are very expensive.
In Italy for this draft you have to pay 0,9 pct, that on annually basis is 3,60 pct,......
Other comments appreciated
Ciao

[khratha]

Hi Ciao,

Are there any similarity between availability of credit- by payment and by mix payment?

Thank for your clarification.

Regards