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What does it mean in the field 78 of a DP L/C "Usance draft shall be negotiated at sight basis irrespective of L/C tenor"

Khurshed

Hi Pal,

In some Countries, to help imports of necessary goods, banks are used to issue a deferred payment l/c but the usance draft will be paid at sight with interests and charges borne by applicant. Some banks are using their offshore branches to effect this transaction. Probably buyer and seller agreed in a sight payment, but the l/c will be worded in this way having the same result.

Khurshed,

Thanks picant.

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