We Failed To Collect Our Outstanding Charges While Payment To The Beneficiary

[dinesh2476]

Experts,

Article 37(c)
If a credit states that charges are for the account of the beneficiary and charges cannot be collected or deducted from proceeds, the issuing bank remains liable for payment of charges.

We have situation where we failed to collect our outstanding charges while payment to the beneficiary. we tried to reach beneficiary many a times but without success.

please advise if we collect our outstanding charges from the issuing despite failure on our side referring the above article

Regards
Dinesh Kumar

[picant]

Hi Pal,

this article refers to the impossibility of recover such charges due to availments with other banks or no availment. You received the proceeds and you had to deduct your charges from it.
However you have the right to charge beneficiary, that had the wording of l/c.
If it is complicated by the intervention of other banks, you may ask the latter to obtain refund of your fees.
Let us know!
Ciao

[dinesh2476]

Hi picant,

It is a straight miss from our end. We received the proceeds from the issuing for the documents sent to them. Since we have pending charges booked on beneficiary and unable to collect it now(we cannot hold such pending in our book for the transaction already closed), we are looking for alternative to try these charges.

Since the article 37C seems supporting of an un-collected charges, trying whether we can refer these article to get these outstanding from the issuing bank.

Otherwise we need mark these as loss as we are unable to reach out to beneficiary

Regards
Dinesh Kumar

[picant]

Hi Pal,

I think you have to book your charges as costs. The issuing bank has no fault. You have to claim
them to l/c beneficiary.
Ciao