acceptance and withdrawal of acceptance

Md.zakir Hossen · Post by **Md.zakir Hossen** » Fri Jul 11, 2008 11:29 pm

Beneficiary submit docs to nominated Bank and nominated bank found some discrepancy and inform it both the beneficiary and Issuing Bank,However Issuing Bank provide its acceptance to the discrepant docs and receiving the discrepancy the nominated bank advance fund to the beneficiary.Some days later Issuing Bank reject the docs and withdraw its acceptance stating some other discrepancies that nominated bank does not stated its previous discrepancy letter.

solicited your opinion

shahriar · Post by **shahriar** » Sat Jul 12, 2008 10:39 am

brother zakir,

could you please give us the exact wording of the acceptance? i need to see whether it was conditional or not.

regds

shahriar

Md.zakir Hossen · Post by **Md.zakir Hossen** » Sat Jul 12, 2008 11:47 pm

Acceptance is not conditional.Exact wording is not available.

nesarul · Post by **nesarul** » Sun Jul 13, 2008 9:45 pm

Dear zakir bhai,
if i understood you posting as follows:
Document received by nominated bank from beneficiary and
after examine the presentation, nominated bank observed some discrepancy and
inform issuing bank by mentioning all discrepancy for waiver.
issuing bank waived the same and nominated bank negotiate the document and forward the same to the issuing bank.
fact:
Can issuing bank raised discrepancy if it found other discrepancy which is/are not mentioned by the nominated bank?

my thinking:
still issuing bank can examine the document as per article 14 and may raised discrepancy(ies) as per sub article 16(c) [if any] except what its waived.[emphasis added]
if i go in wrongway pls correct me.
regards
nesar

nhduc · Post by **nhduc** » Mon Jul 14, 2008 10:33 am

Hi

I support Nesar's view.

The issuing bank may refuse to honour if the documents contain discrepancies other than those which have been previously stated by the nominated bank and waived by the issuing bank

Best regards,
Nguyen Huu Duc

Ozoda · Post by **Ozoda** » Wed Mar 25, 2009 7:52 pm

I agree that the issuing bank may raise the discrepancy other than those which have been previously stated by the nominated bank.
Issuing bank accepted the docs notwithstanding the stated discrepancies, provided that the docs otherwise in order.

cristiand969 · Post by **cristiand969** » Wed Mar 25, 2009 8:32 pm

The negotiating bank has made one of the biggest mistake in his life. Under art. 16 c the refusal notice has to be given to the PRESENTER only. Why did the neg bank inform issuing bank and the worst, without any ackowledgement of the presenter which has been deprived to the opportunity to correct documents.
The rest really doesn't matter but to continue... my best guess it that nominated bank has sent to issuing bank and MT 750 requesting a waiver of discrepancy and issuing bank replied normally by a MT 752. If you look to the swift definition of MT 752 it is stated : It is used to advise the Receiver that documents may be taken up, notwithstanding the discrepancies, provided they are otherwise in order.
The issuing bank has found other discrepancies and it has the right to refuse documents.
it is the second mistake of nominated bank. Sorry zakir, your opinion doesn't work on this case

Md.zakir Hossen wrote:Acceptance is not conditional.Exact wording is not available

best regards
C

Ozoda · Post by **Ozoda** » Thu Mar 26, 2009 10:32 pm

ICC banking commission issued its educational paper "Examination of Doxuments, Waiver of Discrepancies and Notice ubder UCP". In this document stated that the isssuing bank may raise the discrepancies not stated by the nominated bank and refuse to honour...

SHAMEER · Post by **SHAMEER** » Mon Mar 30, 2009 4:37 pm

If the issuing bank has refused the documents within the period allowed by the UCP-600, then the issuing bank is right in withdrawing their acceptance.

.

Regards,