Clause 71B - All Bank charges....

[kirti]

Hi frendz,
am back again

This time with reference to the clause 71B:
"All Bank charges Outside ABC to the account of Beneficiary"
(ABC is applicant's country)

can be this read in the following manner
"All Bank charges outside XYZ to the account of Applicant"
(XYZ is Beneficiary's country)

I guess it means one and the same, but what about charges if any, charged by negotiating, re-imbursing, issuing or advising bank? who bears them?

Is it like - glass half full for A and half empty for B

[Md.zakir Hossen]

It is prudent to mention the charges in the credit.
be precise and specific.

[narisa]

Dear kirti
In logic,it's like glass half full for A and half empty for B.
rgds.

[ajoy]

HI Kirti,

My two bits:

This time with reference to the clause 71B:
"All Bank charges Outside ABC to the account of Beneficiary"
(ABC is applicant's country)

can be this read in the following manner
"All Bank charges outside XYZ to the account of Applicant"
(XYZ is Beneficiary's country)

I guess it means one and the same, but what about charges if any, charged by negotiating, re-imbursing, issuing or advising bank? who bears them?

Generally , I would say the two statements mean one and the same but not always:

Let us say,
applicant's country is ABC
1st advising bank country is PRQ
Reimbursing bank is in counttry PPP
Bene country and 2nd advising bank country is XYZ.

A) Here, if the LC says all bank charges outside country ABC to account of bene it implies

All charges incurred outside ABC i.e.

-All charges in PRQ ( 1st advising bank charges)
-All Charges in PPP ( reimbursing Bank charges )
& All charges incurred in XYZ ( 2nd advising bank's advisng charges, charges related to negotiating etc)

are to the account of Bene.

Issuing Bank charges are incurred in country ABC and are tothe account ofapplicant.

Thus, you cannot always say that the two statements are the same : ie A) above is the same as saying all bank charges outside XYZ are to account of the applicant.

Cheers