Issuing Bank Refuses to allow May Add Confirmation

[vkhy]

Hello everyone,

I would like to tap into your experience and expertise with regards to LCs issued by chinese banks.

I have a client whom is unable have his buyer issue an LC which allows for open confirmation in F49.
The reason the buyer is giving is that the chinese bank issuing the LC has a policy to not allow May Add under F49.

I thought this is quite a peculiar policy as I do not quite understand the rationale behind it. Also, can banks refuse to allow adding of confirmation on their own LCs?

Appreciate your enlightenment.

Thank you

[picant]

Hi Pal,

confirmation, in some cases, means that the issuing bank is not creditworthy, sometime the import Country too. China thinks that it does need a third bank confirmation.
Try with silent confirmation if you need a further guarantee.
Ciao