Docts presented DIRECTLY from benef to issuing bk

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RAL0892
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Docts presented DIRECTLY from benef to issuing bk

Post by RAL0892 » Wed Feb 09, 2022 12:40 am

Hello Everyone,

I hope you're all healthy and well,

My question is the following:
    Is beneficiary allowed to present documents directly to issuing bank?
      In case so, what happens if the nominated bank does not authorize issuing bank to negotiate documents?

      *Please quote articles from UCP600 (if any) that supports your answer

      Thank you for your time,

      Emil123
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by Emil123 » Thu Mar 31, 2022 6:43 am

      Hi RAL0892,

      As far as I know, the presentation of documents under the letter of credit is done by the exporter to the nominated Bank, Negotiating Bank/Advising Bank, then Nego Bank forwards it to the Issuing Bank/Confirming Bank on behalf of the Exporter/Beneficiary. So the negotiation of documents is done Bank to Bank, not from the exporter to the Applicant's Bank.

      NOMINATED BANK – A Bank in exporter’s country which is specifically authorized by the Issuing Bank to receive, negotiate, etc., the documents and pays the amount to the exporter under the LC.

      Please see Article 2 and 12 regarding role of nominated bank in LC.

      CMIIW

      Thanks

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      picant
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by picant » Fri Apr 08, 2022 6:49 pm

      Hi Pal,

      due to AML, KYC etc many issuing banks clause their l/c with a special requirement that direct presentation is not allowed, but if no so established, the art. 7 a, will still applicable.IMHO the issuing bank in receiving suct presentation must contact the nominated bank to ascertain if the l/c is still unavailed. The nominated bank does not need to authorize but just state if l/c has been availed or not.
      The issuing bank may state in its request that failing an answer within ... days , it will honor the presentation.
      (probably nominated bank has grant a financing to the beneficiary)
      Other comments appreciated
      Ciao

      spx
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by spx » Wed Apr 13, 2022 3:57 am

      Hi Friend,
      As per UCP art 6A, if credit is available with nominated bank then it is also available with issuing bank. Hence the documents can be presented to issuing bank directly unless LC calls for any restriction. Nowadays all the L/Cs have the clause that presentation should be bank to bank.

      Thank you

      ermiasT
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by ermiasT » Wed Apr 13, 2022 5:19 pm

      What if the nominated bank give pre-shipment loan against LC....?

      NDAWBACACAR48
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by NDAWBACACAR48 » Sun Apr 17, 2022 3:44 am

      Beneficiary bank should présent docs not bénéficiaire himself

      FanTrade
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by FanTrade » Tue Apr 19, 2022 6:53 pm

      The answer to your question falls under the last paragraph of art.2: Presenter means a beneficiary, a bank or other party that makes a presentation.

      Emil123
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      Re: Docts presented DIRECTLY from benef to issuing bk

      Post by Emil123 » Sat Apr 23, 2022 11:25 am

      ermiasT wrote:
      Wed Apr 13, 2022 5:19 pm
      What if the nominated bank give pre-shipment loan against LC....?
      Preshipment loan is like general loans, between customer (here the exporter or called "Beneficiary" in LC) and Beneficiary's Bank.
      And the presentation of export documents is still carried out by the Beneficiary's Bank to Applicant's Bank.

      Thank you

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