Sight draft in a negotiation credit

[mohitjai]

Hi

Want to check if it is possible to have a sight draft in a negotiation credit which has a usance period of day 120 days after BL date? It is necessitated as the supplier is demanding a draft and there are stamp duty implications for the applicant on drawing draft greater than 90 days? Is it allowed as per UCP to have a sight draft in a negotiation credit which has usance payment terms.

Thanks

Mohit

[picant]

Hi Pal,

I think that for Indian banks it is necessary to build an UPAS credit by involving a Foreign Bank, if the maturity is over 90 days.
However UCP are not requiring draft even if l/c valid by negotiation see definition in art. 2.
Other comments appreciated
Ciao