Discrepancy Fees on Applicant's Account

Zai · Post by **Zai** » Fri Aug 05, 2016 5:00 pm

If discrepancy charges are on Applicant's account then is it necessary to mention it in a seperate clause in LC or simply mention it in field 71B "All bank charges are on beneficairy's account except reimbursement adn discrepancy charges" is OK?? expert opinion requested

picant · Post by **picant** » Sun Aug 07, 2016 3:40 am

Hi Pal,

I dare say that it is not necessary to quote such clause in a l/c. Discrepancies are waived by the issuing bank on applicant's request so it is the latter that instructs to pay the full amount under discrepant documents. Beneficiary must be informed if such fees are on its account and must be comunicated even if documents paid at sight.
Other comments appreciated
Ciao

Navi · Post by **Navi** » Mon Aug 08, 2016 1:28 pm

Hi,

If the beneficiary will not be charged for discrepancies, (applicant will cover) there is no need to add this in the LC. This is a matter between applicant and issuing bank, not concern any other party.

dinesh2476 · Post by **dinesh2476** » Sat Aug 13, 2016 7:20 am

Agree with Navi, if the intentions of the applicant to pay the discrepancies charges to presenting bank as well as issuing bank then incorporating such clause in the LC avoid all possible confusions.

Regards- Dinesh kumar

quang · Post by **quang** » Thu Aug 25, 2016 6:53 am

I think if the App covers the disc fee, the IB should state that on the LC (according to my bank's internal policy)

Discrepancy Fees on Applicant's Account

Discrepancy Fees on Applicant's Account

dare say.....I

not necessary