Dear all,
If drawee refused to pay for the D/P Docs. presented, can the Collecting Bank immediately return the docs. to Remitting Bank or they should communicate with the Remitting Bank for instructions first?
Rgds,
Ajcha
Non-Payment Docs.
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shahriar
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i hear you!!
yes dear, i can hear you. but perhaps i live few light years away. so it took time to reach your signal!! 
in my opinion, yes, it can. its not even necessary for a collecting bank to present the document to the drawee. it can return anytime. but this is not customary of course.
in my opinion, yes, it can. its not even necessary for a collecting bank to present the document to the drawee. it can return anytime. but this is not customary of course.
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nesarul
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returning document
Dear,
From commercial point of view,
When a document dispatch by the remitting bank to the collecting bank, it is international standard practice that the collecting will act accordingly. if the collecting bank reluctant to perform according to instruction of remitting bank, the CB should have to issue a prior notice... before taking an opposite action of remittance schedule...
.
regards
nesar
From commercial point of view,
When a document dispatch by the remitting bank to the collecting bank, it is international standard practice that the collecting will act accordingly. if the collecting bank reluctant to perform according to instruction of remitting bank, the CB should have to issue a prior notice... before taking an opposite action of remittance schedule...
.
regards
nesar
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ajoy
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Article 26 c iii of URC 522 and your original query
Hi
My two bits on the original question:
If no instructions are recived within 60 days the docs can be returned to remitting bank with no further liability on part of the presenting bank.
I am afraid I am not quite with Shahriar on this one.
Even If a presenting bank doesnot want to present documents to the drawee ( or not deal with the collection at all) it should inform the remittng bank first and ask for disposal instructions.
Further , the presnting bank may state in its message that it will return the docs to the remitting bank say after 10 working days in case it recives no communication from the remitting bank. I dont think any article in the URC prevents adding a condition like this provided the remitting bak is given reasonable time to contact the drawer and respond to the presenting bank.
Returning documents to the remitting bank without first informing them and asking for thier consent /disposal instructions in my opinion goes against the spirit of the URC or customary banking practice and may even harm the drawer's interests in some cases.
If the drawer incurrs losses beacuse of a unilateral return of docs by the presenting bank I think the presenting bank should be held accountable for the losses.
Cheers
My two bits on the original question:
The referred artcile tells us that collecting/presenting bank must immediately inform non payment to remitting bank and wait for thier instructions ......If drawee refused to pay for the D/P Docs. presented, can the Collecting Bank immediately return the docs. to Remitting Bank or they should communicate with the Remitting Bank for instructions first?
If no instructions are recived within 60 days the docs can be returned to remitting bank with no further liability on part of the presenting bank.
I am afraid I am not quite with Shahriar on this one.
Even If a presenting bank doesnot want to present documents to the drawee ( or not deal with the collection at all) it should inform the remittng bank first and ask for disposal instructions.
Further , the presnting bank may state in its message that it will return the docs to the remitting bank say after 10 working days in case it recives no communication from the remitting bank. I dont think any article in the URC prevents adding a condition like this provided the remitting bak is given reasonable time to contact the drawer and respond to the presenting bank.
Returning documents to the remitting bank without first informing them and asking for thier consent /disposal instructions in my opinion goes against the spirit of the URC or customary banking practice and may even harm the drawer's interests in some cases.
If the drawer incurrs losses beacuse of a unilateral return of docs by the presenting bank I think the presenting bank should be held accountable for the losses.
Cheers
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akomolpa
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Thank ajoy
Thank you for your good comment.
Rgds,
akomolpa
Rgds,
akomolpa
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TLO
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NON-PAYMENT DOCS.
Dear all,
I have come-across a situation when we (remitting bank) request collecting bank to return documents immediately due to non-payment.
Collecting bank's response 'we need to notify drawee for the return of the documents before taking any action'.
Did anyone experienced this situation that collecting bank is assisting drawee not to return documents and wait for further solution from drawee?
Is there any article from URC522 covering this situation or perhaps a time limit for the collecting bank to return documents from date of receipt notification from remitting bank?
.
Appreciate any comments.
Thanks
I have come-across a situation when we (remitting bank) request collecting bank to return documents immediately due to non-payment.
Collecting bank's response 'we need to notify drawee for the return of the documents before taking any action'.
Did anyone experienced this situation that collecting bank is assisting drawee not to return documents and wait for further solution from drawee?
Is there any article from URC522 covering this situation or perhaps a time limit for the collecting bank to return documents from date of receipt notification from remitting bank?
.
Appreciate any comments.
Thanks
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picant
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Difficulties
Hi Pals,
The collecting bank did not act as per URC 522, I heard that in some Countries to send back goods it is necessary the buyer approval , due to local customs laws.
Art 1 a is quite clear ".....contrary to the provisions of a national, state or local law.....": An exporter must be aware of different risks he will incurr.
Moreover it will be difficult to re-export the goods, that in some cases are considered property of the buyer( goods property of buyer, seller has a credit towards the buyer).
I think that, as per UCP too, art 37 d, the principal is assuming obligations and liabilitiesimposed by foreign laws and usages.
Other comments appreciated
Ciao
The collecting bank did not act as per URC 522, I heard that in some Countries to send back goods it is necessary the buyer approval , due to local customs laws.
Art 1 a is quite clear ".....contrary to the provisions of a national, state or local law.....": An exporter must be aware of different risks he will incurr.
Moreover it will be difficult to re-export the goods, that in some cases are considered property of the buyer( goods property of buyer, seller has a credit towards the buyer).
I think that, as per UCP too, art 37 d, the principal is assuming obligations and liabilitiesimposed by foreign laws and usages.
Other comments appreciated
Ciao