Protest

[akomolpa]

Dear all,
Is it necessary to specify the instruction to Protest for non-payment or non-acceptance?

rgds,

[picant]

Dear Pal,

in your remittance scedule you have to indicate the actions to be taken in case of no-payment or no-acceptance. Some countries need protest to enter in legal action against drawee, but in URC you have to request it, even if a statement by the collecting bank may be sufficient. As art 24 continues that banks are not obliged to protest, some countries could instruct their banks to protest.

Other comments appreciated

Ciao

[loankim]

HI all,

Protesting the bill i.e., a legal action to seek payment from the importer, does not guarantee that payment will be made.
Your collection instruction should contain a field regarding protesting of the bill if unpaid. This field would appear to have been "ticked" when sending the documents to the collecting bank.
If not, the collecting bank sometimes sends MSG such as: “ Protesting will only be done on your confirmation and legal fee min GBP100.00. We will protest if no reply within 5 days ". it means, The collecting bank is stating that they will protest the bill (via a Notary Public) if it is not paid within 5 days. The exporter will be liable for the GBP100 fee and this would be deducted from the proceeds.If the fee is not acceptable, you should revert to the collecting bank and withdraw the request for protest in the event of non-payment.
your comments are welcome !
rgds,

[LLawrence]

There is no harm to ask for a protest. It is not guaranteed that the payment will be made after the protest, however it still useful when the case comes to court. The court will ask exporter whether he went trough 'note' and 'protest' before hitting the case to the court.