charges under transferable LC
Posted: Thu Apr 02, 2020 11:28 pm
Hello,
Please advise how issuing bank has to state charges clause in transferable LC: the aim is that charges outside issuing bank have be paid by first beneficiary, and charges of second bnf's bank, by second bnf. As I understand in original LC, IB cannot state such titles like first beneficiary or second, as original LC bears only field Beneficiary. Upon transferring LC I cannot change any data regarding charges, therefore in case this field states standard clause 'charges outside country xxx are for Bnf acc' will mean that, all charges will be covered by first beneficiary. So the question is how to divide charges to all parties involved in such transaction, i.e. applicant, 1 bnf, 2 bnf.
many thanks
Please advise how issuing bank has to state charges clause in transferable LC: the aim is that charges outside issuing bank have be paid by first beneficiary, and charges of second bnf's bank, by second bnf. As I understand in original LC, IB cannot state such titles like first beneficiary or second, as original LC bears only field Beneficiary. Upon transferring LC I cannot change any data regarding charges, therefore in case this field states standard clause 'charges outside country xxx are for Bnf acc' will mean that, all charges will be covered by first beneficiary. So the question is how to divide charges to all parties involved in such transaction, i.e. applicant, 1 bnf, 2 bnf.
many thanks