Deferred Payment LC And Negotiation At Sight Basis

[sandeep_mt]

Dear All
Field 42P(deferred payment) quotes as 180 days deferred payment where as under field 47a it has been mentioned as ''though the lc is available by deferred payment with tenor at 180 days but beneficiary to be paid by by negotiating bank/nominated bank at sight''Ii want to know in this the tenor on the document submitted by the exporter will be mentioned ''AT SIGHT '' or ''180 DAYS Deffrered payment''.
Lc issuing bank is ABC ltd ,availeble with the issuing bank only.

[shahriar]

Hi,

This is what they commonly called a UPAS (Usance Payable At Sight) LC. Under such LCs, though the tenor of the LC is 90/180 days, the confirming bank / nominated bank pay the beneficiary at sight basis. Paying at sight in these cases are terms of payment. The beneficiary still needs to prepare the document at 180 days.

[primasatya]

yes, it can be called UPAS LC. payments made ​​to the beneficiary "at sight" by the negotiating bank. payment to the negotiating bank is done "at sight" by the issuing bank. Applicant pays the issuing bank on the due date. usually discounted fee paid by the applicant.

Please correct me if its wrong.

[NIAZsebl]

Hello Dear,
I completely agree with by [Shahriar] Bhai.and also by sandeep_mt dada.

Other Comments Appreciated.