Dear Expert(s),
I'm seeking help regarding the below issues:
Case:
We want to import from the company in France and we are in Bangladesh. Our LC opening bank XYZ said that they don't have any business relationship with any bank in France but they have connections/relations with the various bank in Germany. In this case, what can we do? I have two questions
Q: Is it allowable to use LC clause 57 (Advice through) from one country to another country?
Q: Is it justified what our bank XYZ said that they don't have any business relationship with any bank in France?
Best Regards.
Is it allowable to use LC clause 57 (Advice through) from one country to another country?
- mostafashakil
- Posts: 4
- Joined: Tue Jun 02, 2020 7:06 pm
- First Name: Mostafa
- Last Name: Shakil
- Organization: Logistician Club
- Filter: Two Plus Two =: 4
- Location: Bangladesh
- picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Re: Is it allowable to use LC clause 57 (Advice through) from one country to another country?
Hi Pal,
No hamper in routing L/C via a German correspondent to a French Bank, probably more costy.
MT700 to German bank, MT710 from the latter to the French bank hoping that they have a SWIFT RMA:
Nowadays, keeping a No account correspondent is very difficult, so banks try to have RMA relationship only with
banks interested in carry its business via some selected banks.
Recently, I observed l/c issuing in the Far East, routed via German bank to its Italian correspondent, to be advised to a minor bank,
so MT700, MT710 and MT710, delayed as the first italian bank contacted the beneficiary for marketing.
Other comments appreciated
ciao
No hamper in routing L/C via a German correspondent to a French Bank, probably more costy.
MT700 to German bank, MT710 from the latter to the French bank hoping that they have a SWIFT RMA:
Nowadays, keeping a No account correspondent is very difficult, so banks try to have RMA relationship only with
banks interested in carry its business via some selected banks.
Recently, I observed l/c issuing in the Far East, routed via German bank to its Italian correspondent, to be advised to a minor bank,
so MT700, MT710 and MT710, delayed as the first italian bank contacted the beneficiary for marketing.
Other comments appreciated
ciao
-
- Posts: 13
- Joined: Sun Sep 14, 2008 2:40 pm
Re: Is it allowable to use LC clause 57 (Advice through) from one country to another country?
Hi No problem in doing that. Will need to keep in mind though that communication would be very complex and as picant rightly points there will always be delays in passing on any info to the bene bank. Ravi