Discrepancy Accepted By Applicant But Discrepancy Charges Applied Or Not

[kishorp]

Dear experts
If lc applicant accept the all discripancies then discripancy charges will be deducted by lc issuing bank or not.

[picant]

Hi Pal,

usually discrepancy fees are due if the issuing bank(confirming bank) inform the presenting bank as per art 16 etc. If the discrepancy is settled during the 5 days without noticing the presenting bank,
the issuing bank may deduct such charges only if there is a condition on the l/c concering discrepancy fee and the issuing bank inform the presenting bank about discrepancy.
Deducting charges without informing is not corect!
Other comments appreciated
Ciao

[Navi]

Hi,

Discrepancy fee is the additional process fee of the issuing bank due to non complying presentation. These processes are generally, advising refuse of docs to presenting bank by swift, informing applicant the matter, seeking their acceptance, holding docs meanwhile, informing reimbursing bank (in some cases), etc...
Therefore, issuing bank charges discrepancy fee when it takes some of the above actions, regardless of the acceptance of documents by applicant.
Regards

[kishorp]

Dear frnds
I did no understand.
Plz clarify me
My que is that
Suppose i m the beneficery i hav presented doc to my importers bank means lc issuing bank.
Bank raises discripancies and ask to applicant to waiver
Applicant accept all the disc and give approval letter i mean waiver.
Now my que is that i will get my proceed deducted with disc charges or will get full payment

[RAGUNATH]

Hi

You will get your proceeds after deducting the discrepancy fee. Basically this fee is to accept the documents by the issuing bank with discrepancy
Regards
Ragunath S