Best Trade Solution

We issued a letter of credit

LC had a requirement

BENEFICIARY'S WRITTEN AND DULY SIGNED REQUEST FOR PAYMENT
SPECIFYING THAT THEY HAVE COMPLIED WITH ALL OBLIGATIONS TO THE APPLICANT
AND THAT AND THEY HAVE
NOT RECEIVED THE PAYMENT IN DUE COURSE. THIS DOCUMENT MUST BE AUTHENTICATED BY BANK'S DECLARATION
ATTESTING THAT THE SIGNATURES APPEARING ON BENEFICIARY'S REQUEST
ARE AUTHENTIC, VALID AND LEGALLY BINDING UPON THAT COMPANY.

2 days before documents were received at our counters we received a SWIFT message from the presenting bank stating that they had sent us documents under the LC and that
WE CONFIRM HEREBY THAT THE SIGNATURES APPEARING ON BENEFICIARY'S REQUEST FOR PAYMENT ARE AUTHENTIC VALID AND LEGALLY BINDING UPON THAT COMPANY.

The beneficiary's written request did not contain an additional declaration from the beneficiary bank, and no such declaration was included in the documents submitted. When examining documents we raised a discrepancy that BENEFICIARY'S REQUEST FOR PAYMENT NOT AUTHENTICATED AS PER LC

The presenting bank has opposed our discrepancy stating that WE HAVE SENT TO YOU OUR DECLARATION VIA
MT799 SWIFT DD. DDMMYYYY AUTHENTICATING
BENEFICIARY'S SIGNATURE ON THE DEMAND LETTER. IT
WAS NOT REQUIRED BY THE SBLC TO PRESENT OUR
DECLARATION IN PAPER FORM.

Our letter of credit does state ALL DOCUMENTS ARE TO BE FORWARDED UNDER ONE COVER QUOTING OUR LETTER OF CREDIT REFERENCE NUMBER TO OUR COUNTERS XXXXXXXXXXXADDRESS XXXXXXXXXXXX QUOTING OUR LETTER OF CREDIT REFERENCE NUMBER Therefore we believe that the banks' declaration must also be forwarded in the relative cover.

Any thoughts on this matter?

Hi,
For me its a discrepancy reason this is specifically asked in the SBLC
'THIS DOCUMENT MUST BE AUTHENTICATED BY BANK'S DECLARATION.....'
Others comments are appreciated.
Regards,
Muhammad Saqib Khan

Any additional comments?

Hi Pals,

I dont see n issue, Swift message is more valid than a declaration, as nowadays official banks signatures book are not more in use. Then the meaning of this declaration is that the persons signing are binding the beneficiary company, that is not a fraud.
So this is not a discrepancy, IMHO:
Ciao

Hi

First of all, You cannot raise a discrepancy 'BENEFICIARY'S REQUEST FOR PAYMENT NOT AUTHENTICATED AS PER LC' since, Presenting bank already sent you authentic SWIFT message and coming to letter presented by presenting bank. If it satisfies your LC condition then its O.K.if not, you can raise discrepancy saying ' Beneficiary's letter not issued as per lc'.

Please correct me if iam wrong.