no confirmation no checking

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edilee
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no confirmation no checking

Post by edilee » Thu Jan 07, 2010 1:20 am

Let/s suppose we received a unconfirmed letter of credit from the issuing bank
and advised to the beneficiary without checking the terms

the beneficiary shipped the goods an presented the docs.to us
we sent the docs.to issuing bank without checking the docs.

than we noticed that in l/c term it is impossible to determine the maturity date (for example 90 days after deiver but there is no delivery date in any document)

is there any responsibility of advising bank for not checking the l/c term. is advising bank only postman
what is your opinion is advising bank responsibility only checking the authentication of the l/c
thanks in advance

LCstudent
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No confirmation no checking

Post by LCstudent » Fri Jan 15, 2010 2:48 pm

Dear Edilee !
I think any advising bank is obliged to check the details of L/Cs as You have to protect Your client/beneficiary from any disadvantages in business development - the shown behaviour is not, what I understand under L/C processing. Now You have a problem, which could be solved at the time of receipt of doc.credit. Why do/did You not want to check the docs ?
Rgds L/C Student

edilee
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Joined: Wed Dec 16, 2009 12:38 am
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it seems essential but not always

Post by edilee » Sun Jan 17, 2010 5:28 pm

hello deat LCstudent
my question was not relevant with the benefit of scaning the docs. my concern was about obligations
moreover
it seems essential end efficient for your customer checking docs.but not always because you can say everything okey but issuing bank finds something else my wiev it depends the relationship between advising bank and the beneficiary and advising bank should express to his customer that issuing bank may refuse and checking is just for advising not obligation for them
thanks :)

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