Regarding MT730

[NumberZero]

Hola people

Pls need Your kind opinion with kind of approve if any.

I'm a banker and working on trade finance dept. however our team on export unit when receiving MT700 to act as advising bank and generating a MT 730 as Acknowledgement to issuing bank we deduct swift charges for each generated MT730 either its new export letter of credit (MT700) received or new export amendment (MT707).

hence is it legit to debit beneficiary A/C or claim the charges from issuing bank?

my personal and simple point of view I disagree with above process as MT730 automated and mandatory message as it used to acknowledge receipt of any documentary credit message.

Your comment pls.
Thanks and B rgds

[picant]

Hi Pal,

normally a bank collect advising charges, so the MT730 costs are included in such fee.
But it depends on the bank's price list towards customers and confidential tarif towards
correspondent bank, l/c usually contains instructions for collecting charges.
Other comments appreciated.
Ciao

[NumberZero]

Dear sir:

Good day.

I’m thankful for yr quick and prompt reply.

I agree with you regarding advising bank charges includes notifications to issuing bank as acknowledgement i.e. MT730 stating date of receiving.

However, i looked but no such article speak about that on details.

Thanks and b rgds

[cristiand969]

Actually art 37c allows you to recover such charges

[TaiOanlan]

Hi NumberZero,

I must say it is a very weird banking practice and if a bank gets charge claimed each time it receives MT-730, a bank would contest it and basically ignore that kind of charge claim. (Worst case scenario, banks and companies would avoid doing business with your bank)
No single bank would claim Cable charge for MT-730. It is gone too far. You might need to re-consider the practice internally.

Regards, Luke