Hello LCers,
This is my first post, Happy to be in this forum, its one of the best forums I encountered, very active one.
In my LC life, I have had a case.
Usually in China, tremendous number of trade occurs day to day, that is the reason why most Chinese banks does not pay our issuing Bank charges(In case all charges on beneficiary).
A big number of swift messages 999-791-491, still no response or even an automatic message from that major Bank to pay our charges, so what did I do?
I don’t know this article number, but I claimed charges from the applicant at the end, and this applicant had to negotiate this with the beneficiary, maybe by giving a discount in future invoice or whatever.
My practice in LCs is that I send both MT700 and MT740 on the same time, that was the big mistake, that is the stage where I learnt a trick, a very good one.
My new procedure is to send MT700 alone, when negotiating Bank check documents and they send us MT754 informing us that docs complies and that the claim will be effected after 5 American working days, at this stage, I wait for the documents, check them, if complied, I send MT740 minus our issuing charges and disc charges if any.
I wish this story will enrich you a bit and really wanted to share this story with you all.
Wish you all the Best.
Warlord77
MT740 along with MT700
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WARLORD77
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jmitra
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nice
hey!
nice thing to learn on a nice sunday (almost over though
)
yes,i agree with you. our bank does not put 740 very often. rather we usually put a clause that certain charges will be deducted while reimbursing the nominated bank. and i think we must clearly mention this in the LC. this has certain advantages. say if the advising bank has not realized the issuing bank charges and another nominated bank negotiated for full without knowing this, they ill be in peril.
even if we have issued 740, i think we may put a clause that the claiming bank will claim xxx dollar less than the invoice.
by the way, increasing i am having clauses in credit that the applicant has the right to deduct xxx% if the goods are bad. this is fairly non documentary condition and has to be ignored. so far there is no dispute (may be there but i dont know) but i believe we should together avoid this type of clauses
nice thing to learn on a nice sunday (almost over though
)yes,i agree with you. our bank does not put 740 very often. rather we usually put a clause that certain charges will be deducted while reimbursing the nominated bank. and i think we must clearly mention this in the LC. this has certain advantages. say if the advising bank has not realized the issuing bank charges and another nominated bank negotiated for full without knowing this, they ill be in peril.
even if we have issued 740, i think we may put a clause that the claiming bank will claim xxx dollar less than the invoice.
by the way, increasing i am having clauses in credit that the applicant has the right to deduct xxx% if the goods are bad. this is fairly non documentary condition and has to be ignored. so far there is no dispute (may be there but i dont know) but i believe we should together avoid this type of clauses