L/C Discrepancy

[axim120]

Dear all respected members,

I would like to know if the following discrepancy is the valid one for the refusal of payment and further for refusal of the documents by the issuing bank.

The issuing bank ific bangladesh raised :

1. Signature of the custom officer in the bill of lading is mismatch with our record.
2. The importer has not deposited the bill of ENTRY till today.
3. The transport certificate of indian bank association not received by us.

More over the bill received by the bank on 19th dec 09 as per tnt courier .
The refusal by payment and the discrepancy dated 24th dec 09 received by our bank in ordinary post on 5th jan 2010.

Plz suggest what should we do now to get our payment as the same discrepancy is not in accordance with the ucp 600 and also not as per the clause of letter of credit at sight as received by us .

Your valued suggestion would be appreciated.

Thanks

Ram k b

[nesarul]

dear,
I think we should not use the bank name specifically.......isn't it
Nesar

[shahriar]

without details of the credit, it is hard to make any comment. do your bank have SWIFT communication with the issuing bank? or was there any fax no. on the covering letter?

[axim120]

dear sharier

yes our bank has quoted our bank swift code and even the fax no:
more over our bank has raised objection and states that

" we dont agree with your refusal and discrepancy as the discrepancy are not in accordance with the ucp 600 and also not as per the clauses mentioned in the l/c .

ram k banerjee

[shahriar]

humm...
unless or otherwise stated in the LC, i guess the issuing bank has not acted as per UCP 600. if there is no specific conditions in the LC, the discrepancies raised appeared not to be valid (difficult to judge without the LC) and the bank has violated article 16 by not sending the refusal by telecommunication.

you should protest the case boldly. if the dispute remain, one can of course look for justice with law. i suggest to protest the refusal again and demand payment with interest. this is just my understanding and not a official comment

[LCstudent]

Dear Ram K Banerjee! First of all: Did the bank act in all respects of Art. 16 c ? Please note that ALL parts need to be fulfilled, not only extracts. Does the bank keep docs to Your disposal or sending them back and so on (Art. 16 sub. c (iii a - d))?
Incidentally please take a look into L/C details itself. In case a doc.credit stipulates documents or countersignatures through third parties/persons and the applicant himself this is NOT according to ISBP 681 Para 4 (docs issued by the applicant) and Para 5 (quote: "Many of the problems that arise at the examination stage could be avoided or resolved by carefuls attention to detail in the underlying transaction, the credit application and issuance of the credit as dicussed)" unquote). Please keep in mind: Doc.credits are a PAYMENT method, not the way to meet before any courts disputing errors and other ambiguous topics. But this is my personal opinion, others appreciated. rgds LCStudent.