HI EVERYBODY, SHARE YOUR OPINIONS:
I GOT AN D/C WHERE ISSUING BANK CALLS FOR A BENEFICIARY'S CERTIFICATE.
AND ADDITIONAL CONDITION SAYS THIRD PARTY DOCS ACCEPTABLE.
CAN THE BENEFICIARY'S CERTIFICATE CAN BE ISSUED BY THIRD PARTY?
Beneficiary's Certificate When 3rd Party Document Acceptabl
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Md.zakir Hossen
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shahriar
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- First Name: Shahriar
- Last Name: Masum
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Re: BENEFICIARY'S CERTIFICATE
ISBP says
c. "third party documents acceptable" - all documents, excluding drafts but including invoices, may be issued by a party other than the beneficiary. If it is the intention of the issuing bank that the transport or other documents may show a shipper other than the beneficiary, the clause is not necessary because it is already permitted by sub-article 14(k).
based on it i think it is possible
regd
shahriar
c. "third party documents acceptable" - all documents, excluding drafts but including invoices, may be issued by a party other than the beneficiary. If it is the intention of the issuing bank that the transport or other documents may show a shipper other than the beneficiary, the clause is not necessary because it is already permitted by sub-article 14(k).
based on it i think it is possible
regd
shahriar
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iLC
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Re: BENEFICIARY'S CERTIFICATE
Hi!
i dont agree with shahriar. its not that simple. unless its a transferable Letter of credit which had been transfered, the beneficiary certificate must be issued by the beneficiary. if we were to accept document from any party under the third party clause, then there would have been no use of transferable LC. on article 39 would be enough. precisely, beneficiary certificate must be issued by the named beneficiary in the letter of credit, not the other parties working at the instruction of the beneficiary.
iLC
i dont agree with shahriar. its not that simple. unless its a transferable Letter of credit which had been transfered, the beneficiary certificate must be issued by the beneficiary. if we were to accept document from any party under the third party clause, then there would have been no use of transferable LC. on article 39 would be enough. precisely, beneficiary certificate must be issued by the named beneficiary in the letter of credit, not the other parties working at the instruction of the beneficiary.
iLC
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nesarul
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Re: BENEFICIARY'S CERTIFICATE
Dear all,
This is long outstanding question which has been yet to dissolve in international community [so far i know]
some one says that it is the only beneficiary who has to issue this certificate, since there is an specific requirement from whom this particular certificate is asked for.
Someother says that since there is a stipulated condition[third party document acceptable], this certificate can also be prepared by any party [other than beneficiary].
I think nominated bank (if any) and beneficiary must asked for clarification from the issuing bank regarding its intention before taking any decision on above in order to avoid any complexity.
My thinking is that whatever decision the nominated bank(if any) or the beneficiary took, an issuing Bank should have to abide by this because it is the issuing bank who should be responsible for creating ambuguity on other counterpart. moreover Official Opinion R557 has also mentioned that "the word third party document acceptable" has got no meaning.
regards
nesar
This is long outstanding question which has been yet to dissolve in international community [so far i know]
some one says that it is the only beneficiary who has to issue this certificate, since there is an specific requirement from whom this particular certificate is asked for.
Someother says that since there is a stipulated condition[third party document acceptable], this certificate can also be prepared by any party [other than beneficiary].
I think nominated bank (if any) and beneficiary must asked for clarification from the issuing bank regarding its intention before taking any decision on above in order to avoid any complexity.
My thinking is that whatever decision the nominated bank(if any) or the beneficiary took, an issuing Bank should have to abide by this because it is the issuing bank who should be responsible for creating ambuguity on other counterpart. moreover Official Opinion R557 has also mentioned that "the word third party document acceptable" has got no meaning.
regards
nesar