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Hi all

Have come across a case wherein the beneficiary has submitted the documents to the nominated bank which just forwards the documents to the issuing bank. The covering letter of the nominating bank has wrongly mentioned the LC reference number of the issuing bank.

The issuing bank has refused to honour claiming the error in the covering letter as a discrepancy.
Can this actually be considered a discrepancy? The covering letter of the nominated bank does not consititute the "DOCUMENTS" to be presented under an LC. Hence how can errors in the covering letter be claimed as a discrepancy?

Request your views please

Regards
Felix

I believe the issuing bank would certainly be right in seeking clarification from the nominated bank , but it should not be a discrepancy

ITS NEVER A DISCREPANCY


Discrepancy should be seen from the documents forming part of LC. the covering letter either should be disregarded/or in reality a separate covering letter should be called for.

It's obviously NOT a discrepancy when the LC reference wrongly mentioned on a cover letter.

It's not only related to cover letter, but also may be invoice as required document other than a cover letter, it shouldn't be a discrepancy due to ICC has an opinion about LC reference does not a case of the discrepancy, since banks maintain them for themselves for tracking their records.

Hi Gubaz

If you have the ICC opinion on this subject could you please share it with me

Regards
Felix

I actually got experience with the same case. We sent covering letter with wrong L/c no., the issuing raise disc as overdraw amount. We sent authentic msg with correct L.c no and ask the issuing bank to check under this L.c no. Then it's alright after all.