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Why Draft is not drwan on Applicant under UCP?

Hi Pal,

draft in many Countries are subject to stamp duties, the credit they represent is already in the l/c.
draft is a mere way to state the receipt of money.
If in your Country there is a need to have a draft on applicant, you may insert a draft in the "documents required list"
Other comments appreciated
Ciao

The main reason for disregarding drafts drawn on the applicant is because the applicant is not a party to the LC; it is a commitment by the bank to the beneficiary and therefore the requirement by the beneficiary to impose an obligation on the applicant to pay (by acceptance of the draft) is redundant

Draft is not drawn on the applicant in case of an LC as it is the obligation of the bank and not the applicant to pay the complying docs. The whole point of an LC is that commitment of the applicant is not sufficient otherwise a simple DA/DP collection would have sufficed.

The main reason fr drafts drawn on the applicant is because the applicant is not a party to the LC

Clearly described in UCP art 2, Applicant is not a party to LC
.
Regards