Best Trade Solution

Beneficiary presents docs to the advising Bank in a freely negotiable Credit.Advising Bank submits the docs to the issuing bank without checking the docs and advising Bank doesn't nego the docs.However Issuing Bank refuse to honor the docs as they are not complying.

Now the issuing Bank blame the presenting bank for not informing him the discrepancies in the credit and wants to go the court.

Solicited your opinion.

i think the beneficiary is blaming the presenting bank. right? simple answer.

the presenting bank didnt take the nomination and therefore not bound to examine the documents.

regd

shahriar

As per UCP 600 art 12 the nominated bank is not obliged to honour or negotiate except when it agrees and inform the beneficiary accordingly

QUOTE

Nomination
a. Unless a nominated bank is the confirming bank, an authorization to honour or negotiate does not impose any obligation on that nominated bank to honour or negotiate, except when expressly agreed to by that nominated bank and so communicated to the beneficiary.

UNQUOTE

I feel that the answer lays in art. 16a whereby it is for each bank to determine whether the documents comply or not and decides to take or refuse docs.
The issuing bank was not in line with UCP in this case