Best Trade Solution

Can applicant directly present document to issuing bank instead of negotiating bank?

Hello friend,

I believe you were thinking of "Beneficiary" instead of "Applicant".... can you rephrase your question?

Regards,

Rajesh

hello,

you mean 'Beneficiary' instead of applicant. yes beneficiary can present the document to the LC issuing bank. in this condition LC issuing bank acts as collecting/negotiating bank to the beneficiary.
UCP clause no. 6a says,'A credit must state the bank with which it is available or whether it is available with any bank. a credit available with a nominated bank is also available with the issuing bank.'

regards,
mandeep

Hi,
Yes beneficiary can directly present the document to the issuing bank.
Please see UCP-600 article 6a
Thanks

Except of course if the "beneficiary" happens to be the 2nd beneficiary under a transferred LC (38k of UCP600).

I totally agree that Ben. can directly presented docs. to Issuing Bank. Howerver, if Issuing bank and Ben. are not in the same country, Issuing Bank will face to risk of fake docs.

I doubt if the beneficiary directly present doc to issuing bank. How can the bank response to the beneficiary?

Beneficiary can present documents directly to issuing bank... For example if credit available with any bank in India and it expires in some other country, then its not workable... Correct me if I'm wrong...

Yes, regarding to UCP 600,art 6a, issuing bank is also available for presentation, but in the practice, it is uncommon way, since the beneficiary needs to secure the payment through his bank. Or maybe in your case, the issuing bank and the advising bank is the same bank (separate by country-as separate bank)