A pre-advice LC or amendment

[WARLORD77]

Dear all,

As per article 11 b, it states that whenever you issue a pre-advice teletransmission either for new LC or amendment, then this pre advice is considered and irrevocable commitment. My question is that what is the use of this Pre advice if its considered operative, I thought its used when the applicant want to confirm if the LC which will be issued on a later stage is acceptable by beneficiary, and in case not acceptable, both parties can correct things in the pre advice and send it then on MT700 without need for amendment. Am I wrong?

[Jackie]

Hi Warlord77

Pre advices were used more commonly in the past when it took a lot longer for l/cs to be issued, ie before the advent of SWIFT. Personally I have never issued a preadvice or received one and am unsure as to their current use. In any event the information shown on a pre advice would only show brief information.

Thanks Jackie

[nayanrshah]

I have never come to see Pre-advice LC. MT 705 swift template is use for it.If some one come across it,pls. advice what minimum details this swift contain

Regards
nayanrshah@hotmail.com

[WARLORD77]

Why I asked this pre-advice question!

My Target was to avoid any amendments, an applicant issues operative LC, and then the beneficiary requests 10 amendments, at the time of checking documents, wth! U must reflect the 10 amendments into the LC then check the shipping documents, this is time consuming.
If applicant requests from me a new LC, am thinking of sending the Pre advice MT705 first, if any change required by the beneficiary, then this is the right time. At the time the beneficiary approves the pre advice information incorporated in, then I can issue the operative LC with no doubt of making amendments to change some conditions, or changing the Description of Goods whatsoever.

Guys and girls, what you think?

[berry]

to be honest, i never thought in this way. i believe there must be some problem ( i dont know though ). otherwise we would have seen this long ago. why dont you give the applicant a draft of the LC and then on confirmation issue the LC. i personally do not always listen to all the amendment request. they think in their way and i have mine.