Dear cdcs
I bring your kind notice
After receiving LC If Beneficiary does not make shipment
What conciquenies are waiting for ben ?
dulari
If ben does not make shipment
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dulari
- Posts: 24
- Joined: Wed Jan 20, 2010 4:04 pm
- First Name: golam
- Last Name: mostafa
- Organization: bank
- Filter: Two Plus Two =: 4
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Negotiator
- Posts: 47
- Joined: Thu Mar 18, 2010 6:36 am
- First Name: Ivan
- Last Name: Lee
- Organization: N Bank
- Filter: Two Plus Two =: 4
Nothing, in perspective of UCP
Dear Dulari,
If the beneficiary does not make any presentation (I think this is more appropriate expression than "shipment") under the credit unitl its expiry, the issuing bank (or confirming bank) will be released from its obligation to pay against complying presentations under the credit. So the credit becomes useless and the beneficiary cannot receive any payment under it. That's all. No more things will happen under the credit.
However, the beneficiary may be regarded to breached its obligation to sell goods according to underlying contract. So some disputes can occur between seller and buyer, as a result, the buyer will be entitled to claim compensation from the seller.
Regards.
Lee
If the beneficiary does not make any presentation (I think this is more appropriate expression than "shipment") under the credit unitl its expiry, the issuing bank (or confirming bank) will be released from its obligation to pay against complying presentations under the credit. So the credit becomes useless and the beneficiary cannot receive any payment under it. That's all. No more things will happen under the credit.
However, the beneficiary may be regarded to breached its obligation to sell goods according to underlying contract. So some disputes can occur between seller and buyer, as a result, the buyer will be entitled to claim compensation from the seller.
Regards.
Lee