BENEFICIARY CAN'T SUBMIT DOCS TO BANK DUE TO ACCOUNT PROBLEM IN L/C
Posted: Tue Nov 27, 2018 12:14 am
Dear Experts,
I need suggestion or solution on following case. It's a real and current case.
Beneficiary is from USA = X
Applicant is from BD = Y
Beneficiary bank = Z
Applicant bank = A
'X' gave PI to 'Y'. 'Y' opened L/C to 'X' through 'A' to 'Z'. 'X' got the L/C from 'Y' through 'Z'. 'X' arranged the shipment
as per L/C terms within LDS to 'Y' and gave all the non nego docs to 'Y'. 'Y' cleared the goods from customs and ran the machines already.
While submitting the docs by 'X' to 'Z' for L/C presentation 'Z' refuses to process the L/C. Because 'X' bank account was a personal account where company name were exists only and that is not a trade account. As per new US govt rule 'Z' can't process the documents of 'X' now. 'Z' apologized for the mistake as they should inform 'X' earlier at the time when they received the L/C SWIFT from 'A'.
Now, L/C already expired but 'X' could not send the docs through 'Z' to 'A'. 'X' is suffering now.
'X' needs the payment anyhow.......WHAT CAN BE THE SOLUTION THROUGH X CAN GET THE PAYMENT ??
'X' previously processed L/C works and 'Z' did not create any problem But for last two US Govt rules changed that's why 'Z' could not process the X L/C docs presentation.
Please, help on this issue.
A = Standard Chartered Bank
Z = HSBC NY
Thanks,
Moin
I need suggestion or solution on following case. It's a real and current case.
Beneficiary is from USA = X
Applicant is from BD = Y
Beneficiary bank = Z
Applicant bank = A
'X' gave PI to 'Y'. 'Y' opened L/C to 'X' through 'A' to 'Z'. 'X' got the L/C from 'Y' through 'Z'. 'X' arranged the shipment
as per L/C terms within LDS to 'Y' and gave all the non nego docs to 'Y'. 'Y' cleared the goods from customs and ran the machines already.
While submitting the docs by 'X' to 'Z' for L/C presentation 'Z' refuses to process the L/C. Because 'X' bank account was a personal account where company name were exists only and that is not a trade account. As per new US govt rule 'Z' can't process the documents of 'X' now. 'Z' apologized for the mistake as they should inform 'X' earlier at the time when they received the L/C SWIFT from 'A'.
Now, L/C already expired but 'X' could not send the docs through 'Z' to 'A'. 'X' is suffering now.
'X' needs the payment anyhow.......WHAT CAN BE THE SOLUTION THROUGH X CAN GET THE PAYMENT ??
'X' previously processed L/C works and 'Z' did not create any problem But for last two US Govt rules changed that's why 'Z' could not process the X L/C docs presentation.
Please, help on this issue.
A = Standard Chartered Bank
Z = HSBC NY
Thanks,
Moin