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If LC says Article 37c excluded then who will the charges?
Posted: Sat Apr 19, 2014 11:15 am
by niraj4640
As per article 37c, if advising bank fails to collect their charges From beneficiary then they can collect their charges from issuing bank..
But what if there is a clause in LC to exclude article 37c.. In that case from whom advising bank will collect their, if they fail to collect from beneficiary..
Sub article 37(c)
Posted: Mon Apr 21, 2014 3:33 pm
by hachem
Hi,
Before advising the L/C, the advising bank should request the issuing bank to remore the statement stipulating that the sub-article 37c of UCP is excluded.
So if the issuing bank fail to collect charges from the beneficiary, it can not collect charges from the issuing bank too. In this case, the advising bank will support the advising charges.
Regards
H Jallouli
LC Charges
Posted: Thu Dec 11, 2014 11:54 am
by tituisrt
Hi
Advising bank will definitely Seek Amendment to delete this article from the LC.
Thanks
How much!
Posted: Thu Dec 11, 2014 11:20 pm
by picant
Hi Pals,
the advising bank may decide not to adhere and refuse the l/c.
But the amount of the commissions and charges is normally a fixed sum, in Italy it may vary from EUR 25,00 to EUR 100,00.
In case of non utilization the l/c will no bear other charges.So the risk of loss is very limited.
Other comments appreciated
Ciao