Poorly Formated LC And Document Lost In Transit

shahriar · Post by **shahriar** » Thu Jun 19, 2008 9:30 pm

dear friends,

few weeks back i received a mail letter of credit as advising bank from a local bank. the letter of credit was poorly written and not even mentioned who is the nominated bank or with which bank it is available. this is a clear violation of UCP 6a. however the letter of credit was a long awaited one by the beneficiary and accepted it anyway.

a week ago we forwarded the document to the issuing bank. but it never reached the bank. it was lost. two days back i forwarded a copy stating that the original was lost but we found it complying. please honor the presentation as per UCP Article 35. the issuing bank replied that the article is only applicable for for nominated bank and we are advising bank only.

any idea to rescue the client

shahriar

nesarul · Post by **nesarul** » Thu Jun 19, 2008 9:53 pm

Dear Shahriar,
Interesting, Typical one, I think no rescue from UCP.....But the exporter (not beneficiary) can file a suit against Importer (not applicant) proofing delivery of goods duly acknowledge by the Importer. and so on...

awaiting for others reply.
regards
nesar

Mehdi · Post by **Mehdi** » Sat Jun 21, 2008 11:20 am

Hi,

Appreciate if you please discuss the legal ground under UCP of accepting mail LC.

Regards...........Mehdi

shahriar · Post by **shahriar** » Mon Jun 23, 2008 9:50 pm

dear mehdi,

UCP is silent about the mode of lc in which it may be issued. though outdated, but mail LC is still in use specially for being cheap. personally i issued a significant number of mail lc.

however for international lc, risk is always there. though swift has no signature or human authentication, it safer as we all know.

regd

shahriar

Poorly Formated LC And Document Lost In Transit

Poorly Formated LC And Document Lost In Transit

Re: poorly formated LC and lost document

Re: poorly formated LC and lost document

Re: poorly formated LC and lost document