UCP 37C Excluded And Advising Fee

[dodo]

Hi all,
If The ucp 600 art 37c is excluded, and if the beneficiary reject to pay the LC advising fee, does the advising bank still have the right to claim that fee from the issuing bank?
Thank you so much.

[picant]

Hi Pal,

advising bank knows that the issuing bank will deny any request of advising fees even if such behavior is not as per UCP 600, however I will inform beneficiary by phone and try to obtain its permission before officially sending the l/c. If It does not agree I will contact the issuing bank, requiring the advising fees and consider it responsible for any delay.
By UCP terms the issuing bank is, IMHO, always liable for eventual charges.

Ciao

[CristianD]

In accordance with the very definition of the credit (art. 1) , the terms of the credit are binding on all parties unless expressly modified or excluded. The issuing bank clearly stated their position that no regress on them for unpaid charges will be allowed. When advising the credit, the beneficiary's bank has implicitly agreed to act in accordance with terms of the credit 'as excluded or modified' and cannot held responsible the issuing bank for failure to honor their claim for unpaid charges.
regards
C