Dispute on LC Charges

[DarkKnight]

Dear Comrades,

A very exceptional situation has arisen.

LC was available for negotiation at the counter of the issuing bank and "all bank charges were on the account of the applicant".

The beneficiary of the LC presented documents at our counter(Advising bank) and we forwarded the subject documents to the issuing bank for their negotiation. We claimed our HANDLING CHARGES in our covering schedule from the issuing bank on the basis of all bank charges on the account of applicant.

The issuing bank refused our handling charges commenting that the beneficiary ought to have presented the documents at their counter for negotiation instead of ours. We replied saying that it is the beneficiarys prerogative to present the documents whichever counter they desire and as a bank who handled their documents, we have the right to claim our documents handling charges. If the issuing bank was indeed conservative on charges, they should have been precise about it.

This is leading to a back and forth exchange of messages. Can I have the opinion of all my distinguished comrades?

[picant]

Hi Pal,

quick answer: the issuing bank must honour and not negotiate.L/c bad worded. Issuing bank will bear risk of misinterpretation, however what are the handling charges, probably collection charges with a limit.
Ciao