Both Are Same Bank But Different Country; Where Field 49 Read As 'Confirm'.

[Sudheer]

Hi All,

we have received LC from ABC - India and advising bank is ABC - Korea both are same bank but different country.
where field 49 read as 'CONFIRM'.

question:

1. shall we add confirmation for our own entity
2. if yes, why
3. if no, why

thank you.

[picant]

Hi Pal,

Frankly I dont understand! Have you received Swift messages? ABC Korea is the issuing bank and ABC India is the advising bank?
Let me know:
Ciao

[Sudheer]

LC issued by ABC bank - India
LC advising bank is ABC bank - Korea
(both are same banks but different countries)

field 49 reads as 'CONFIRM'

note: LC issuing bank and advising bank are same but countries are different.

questions:

1. shall we add confirmation to the LC
2. if yes, why
3. if no, why

thank you.

[Sudheer]

Hi All,

we have received the LC where field 49 reads as 'MAY ADD' and charges are for applicant account.
we have received the LC where field 49 reads as 'CONFRIM' and charges are for applicant account.

question:

if LC reads 'may add' that means shall we directly add confirmation. when charges are for applicant account.
if LC reads 'confirm' that means we directly add our confirmation. when charges are for applicant account.

what is the difference between 'may add' and 'confirm'

thank you.

[Dirush]

Hi All,

we have received LC from ABC - India and advising bank is ABC - Korea both are same bank but different country.
where field 49 read as 'CONFIRM'.

question:

1. shall we add confirmation for our own entity
2. if yes, why
3. if no, why

thank you.

So in this case, ABC - India is issuing bank, and advising through bank is ABC - Korea if I am not understanding wrong.
You as first advising bank asked by issuing bank to add confirmation, you can get beneficiary consent if they would like to add this confirmation.

1. if yes, then they present docs to you and you check docs, post docs to issuing after checking, you take settlement risk for the beneficiary.
2.if no, then it is like treat as a normal LC.

Please kindly correct if I am wrong.

Thanks a lot in advance.