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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

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

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.

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

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