pals,
while dealing with letters of credit, we often receives clarification, (not amendments) from the issuing bank via MT799 or 999. earlier our bank provided such message to us for free. recently they have started to charge amendment advising charges irrespective of the content of the 799. please advise whether the bank could treat any message as an amendment and can charge advising charges.
Advising charges for 799 message
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picant
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advising charges
Hi Pal,
are you banker or not? Normally an MT 799 is sent to bank to bank relationship on official 7xx messages, so if a message MT707 is not clear the receiving bank will contact the issuing bank for clarification in order to well manage the amendment. This in my opinion could be paid as cost, out of pocket cost, and not as commission.
I read something in FAQ by Collyer, the author disagreed with my opinion. I will check and revert asap.
In the meantime other comments appreciated
Ciao
are you banker or not? Normally an MT 799 is sent to bank to bank relationship on official 7xx messages, so if a message MT707 is not clear the receiving bank will contact the issuing bank for clarification in order to well manage the amendment. This in my opinion could be paid as cost, out of pocket cost, and not as commission.
I read something in FAQ by Collyer, the author disagreed with my opinion. I will check and revert asap.
In the meantime other comments appreciated
Ciao
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shahriar
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advising charges
Hi!
i was just working on a similar topic. the answer lies in the answer whether any communication between the issuing bank and beneficiary via an advising bank falls within the definition of advise. UCP 600 article 2 suggests that only a LC can be advised and not even the amendment while article 9 suggests that only LC and amendment can be advised while article 37c keeps it all open.
i was just working on a similar topic. the answer lies in the answer whether any communication between the issuing bank and beneficiary via an advising bank falls within the definition of advise. UCP 600 article 2 suggests that only a LC can be advised and not even the amendment while article 9 suggests that only LC and amendment can be advised while article 37c keeps it all open.
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S.Khalili
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Advising Bank Charges For Clarifications Issued By Issuing B
A close perusal of the question floated by M/S Nura unravels that should the clarifications issued by issuing bank be charged by advising bank to beneficiary or not. I think for such charges article 39 is silent. Practice in my country is that no commission is charged for clarifications etc.
I think clarifications can never be treated as amendments.
Moreover articles 2 and 9 as quoted by Shahriar appear to be irrelevant to the proposition.
Disclaimer:
The above represents my personal view. The reply given is not to be construed as being other than solely for the benefit of guidance and there should be no legal imputation associated with the reply offered.
I think clarifications can never be treated as amendments.
Moreover articles 2 and 9 as quoted by Shahriar appear to be irrelevant to the proposition.
Disclaimer:
The above represents my personal view. The reply given is not to be construed as being other than solely for the benefit of guidance and there should be no legal imputation associated with the reply offered.