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We have presented our documents under LC to our bank for negotiation. But the new staff in our bank who does not know anything about LC, sent it with covering letter mentioning IRC522 instead of UCP600. But all our documents are as per the LC. Even the Bill of Lading is consigned to the LC issuing bank only.

But now the Issuing bank is not paying the documents because the covering letter didnot mention the letter of credit anywhere and also UCP600 is not mentioned. And they have kept the documents under collection department for payment from Buyer as per IRC522. But Buyer had refused to pay.

So we requested our bank to send Swift informing their fault in covering letter. They tried to send swift to this BANISTMO panama bank. But it is not going because they donot have RMA facilities with IOB in India. So pls advise us how to handle this situation and how our Bank can inform the Issuing bank that the Bills negotiated by them as per LC. The LC is valid till 20dec2015.

Hi Pal,

I really wonder about your case, if the presenting bank is not nominated or acts on its nomination is a bank that send documents as collection, but naturally quoting lc number and indicating the issuing bank as drawee, it is under UCP 600.
However your bank must send a Swift message MT999 to the issuinng bank stating that the presentation is under UCP
600.
Good luck.
Ciao

Thanks very much for your reply. We did receive reply email from Issuing bank to send MT999 stating the UCP600.
Anyhow there is no swift arrangements with our bank and Banistmo.
So they have asked to send MT999 through citibank.
Our bank shall send tomorrow. Thanks