l/c payment stoped by issuing bank

[tahir]

we had submitted documents with bank and now bank point out 4 descripencies which also we provided them already all they required.bank have some pro with applicant even applicant also willing to accept the documents but bank not allowing applicant to accept cause some liability pro with bank and applicant..as applicant have bank facility from l/c issuing bank and bank dont want pay our money .what we need to do.who is responsible for our payments.where we need to contact as our bank sending reminder with issuing bank swift.bank issuing bank still asking us that applicant not accept documents and they holding documents on exporter,s bank disposal and asking he will return the documents with in 5 days without there any responsibilities pls advise us

[berry]

Hi!

i understand that your presentation was discrepant. if you have rectified the discrepancies and represented within the expiry or latest presentation date, then issuing bank must honor. however if there is still discrepancies, then bank is not bound to accept the waiver of the issuing bank. what where the discrepancies and how you complied them?

if your bank are certain that the discrepancies are not valid, then they may seek ICC opinion which is not binding to any party of course.

good luck!

[tahir]

bank in uae is still holding our papers and payment against l/c at at sight/ irrevocable since almost last 17 days even we provided them all documents what they req within time bank have pro with the applicant even applicant want to accept the papers .but bank not allowing the

customer to accept as issuing bank dont trust on applicant now .what we beneficiary need to do now as we supply the goods on behalf of adib l/c now adib send msg to our bank that applicant accepting papers yet.pls advise us what options we have in hand now if bank reject our documents and send back

[berry]

you didnt mention the discrepancies. if the discrepancies are valid, you have nothing to do but to call back the goods or sell to another customer.

[WARLORD77]

Please say the discrepancies to give u a clear answer

[tahir]

Please say the discrepancies to give u a clear answer

1/invoice does not state name and address of manufacturer.

2/carrier not identified on b/l.

3/ship co certificate is not made in adib name.does not state our l/c number.

4/courier receipt not presented.

note discrepancy number 1 and 3 had removed now from l/c issuing bank as we supply them documents.

discrepancy number 3 about carrier identified was not required in l/c and number 4 courier receipt we already provide them with other documents but they r denying .

pls advice us how we can mention carrier name on b/l as all orignal documents with the l/c opening bank. can we ask them to send us b/l back so we can put the carrier name on b/l and send them back as there is still time till 17 march 2010 for l/c expire. note there is already stamp from carrier on b/l.

[WARLORD77]

1) Issuing Bank has no right to stop the payment for a reason that applicant is in default or any problem, since LC has been issued from their side, it becomes Irrevocable, and since applicant intimated to the beneficiary that he accepted all Disc. but his Bank does not, its a shameful on them to be honest.

Applicant problems with the Issuing Bank is between them and not related to beneficiary.

If I were you I would send them a swift message not to the LC department, but write it to a higher authority like CEO or Operations GM, and write it as top urgent, and explain to their superior the mistake their LC department done.

Also you can call their operations manager directly for the problem.

At the End, Applicants accepts all type of discrepancy, they are in need for the goods, a line missing in any document is not their concern, unless if applicant is in urgument with the benefciary!.

GL

[iLC]

the LC is still valid, for a considerable time indeed. time is very important now. need to address the and fix the discrepancies first. we need to see the document to help you. could u please scan and upload? about the discrepancy 3 -

carrier not identified; now thats a critical discrepancy on an important document. there are many possible ways to solve -

1. calling back the BL and the resend after correction. time consuming of course
2. you can ask the overseas agent of the carrier to go to the issuing bank and fix the discrepancy
3. send a new page showing the carrier name clearly mentioning that this page is an integral part of the BL. give the BL no. and other details.

any one any more idea?

discrepancy number 3 about carrier identified was not required in l/c and number 4 courier receipt we already provide them with other documents but they r denying

what do you mean by they are denying? are the asking for the BL? or is the issuing giving new refusal after the presentation of the corrected document?

by the way, i was just having a thought.. is it necessary for the issuing bank to give fresh refusal mentioning the discrepancies of the BL after presentation of each corrected document?
your comment please

[tahir]

now my bank call back the b/l for put carrier name on b/l and clear the last disc. sir i already had send all documents to the host of this site .i can e mail all again if any 1 want .we contact central bank of uae.2 times but they dont reply us just they forward case to issuing bank. on 12 feb issuing bank send swift message to our bank that exporter had contact the center bank. note; applicant also had contacted central bank 2 times,but not good response. instead issuing bank behavior is more non cooperative. as no body can force them.but i am also willing to suffer and want to fight with them rather then step back.i heared from other ppls also that the issuing bank is doing this with his customers now a days cause of crises in dubai.they need to suport business cumunity this critical time but they r forcing ppls to leave r slip from dubai.

[tahir]

issuing bank clear 2 descripency before and send swift msg to our bank also that those desc was clear but now again he point out ha that disc.we feel issuing bankk is not honest to honor his l/c .as applicant already had accept that disc .adib dont want to give papers to applicant and also not sending us payments.pls advise us how to contact with icc as urgent.

[tahir]

l/c is valid till 17 march .documents was presanted on 2nd feb on time.doc presantation time was till 15 feb l/c issuing bank point out some disc which we fix and send bank already but after the doc presantation time 21 days,but l/c is still valid .is applicants bank can refuse the documents cause of late fix the disc pls your comments urgent thanks

[iLC]

dear tahir,

any presentation including a original transport document must be made within 21 days from the date of shipment. the same rule applies for corrected documents also. if you have sent the corrected document after 21 days from the date of shipment, its a discrepancy. but the issuing bank must send a refusal advice (Again) stating this discrepancy; late presentation. if they have not send it, then the issuing bank is preclude from raising any further discrepancy.

[tahir]

dear tahir,

any presentation including a original transport document must be made within 21 days from the date of shipment. the same rule applies for corrected documents also. if you have sent the corrected document after 21 days from the date of shipment, its a discrepancy. but the issuing bank must send a refusal advice (Again) stating this discrepancy; late presentation. if they have not send it, then the issuing bank is preclude from raising any further discrepancy.

s
dear ilc, want to email you all swift message and documents so you can guide me .issuing bank is wasting time and playing with us as l/c will expire on 17 march.applicant had already accept disc documents and send us acceptence letter with receiving stamp from issuing bank .bank is still holding documents since 1st january and also no payment yet. in short bank dont want to give dox to applicant and also not willing to honor his l/c . we contact all available sources already central bank of uae and issuing bank's head office and trade finance section of issuing bank but no reasonable response yet.and time is running from our hands

[tahir]

issuing bank send back b/l on 5 march to our bank and other documents bank still holding since 2nd feb .we fix the discrp on b/l and send back to issuing which they received on 8th march.carrier name was not mention on b/l .but carrier stamp and signature was already on b/l. what is our status and what more bad can do the issuing bank with us

[Jackie]

Hello

Firstly I sympathise with you. However I feel that perhaps it is not professional to outline an ongoing case such as yours in great detail on a website like this. Perhaps this may be why this case has not been resolved. Please remember that even if an applicant under the l/c accepts discrepancies, the l/c issuing bank is not under any obligation to do so and may return the documents to the presenter at any time should they feel that the discrepancies are still valid.

Just a thought, does the applicant of the l/c have another banker to whom documents may be presented as a documentary collection? If so they will have to pay to gain control of the goods/documents and discrepancies should not be an issue.

If you feel that your case warrants it, try contacting the ICC (International Chamber of Commerce) who may be able to assist.

I wish you every success in your endeavours to come to some form of resolution.
Jackie