Acceptance Communication By Issuing Bank

John999 · Post by **John999** » Sun Mar 05, 2017 8:20 pm

Dear Experts,

How does the issuing bank confirm Acceptance of Usance bill under Letter of Credit? Which MT Message will be used?

If no response is received after how many days can the bills be automatically considered as accepted by the Issuing Bank?

Regrads.

shafi865 · Post by **shafi865** » Tue Mar 07, 2017 11:05 pm

Hi,
The advice of acceptance as well as the advice of maturity is generally given by MT 756, MT754 and also by MT 799. It also given by MT 999 when there is no RMA between two banks. However, some people say that MT 754 is not dedicated for acceptance and they prefer to use MT 799 for acceptance purpose.

There is no automatically acceptance after some fixed dates according to UCP 600. According to UCP 600 sub-article 14(b), IB, NB, CB each have maximum 5 banking days following the day of presentation to determine if a presentation is complying. And according to UCP 600 sub-article 16(f) if IB or CB fails to give notice of refusal within fifth banking day, it shall be precluded from claiming that the documents do not constitute a complying presentation. From the above two sub-articles, it can be deemed that the document is accepted if no refusal notice is given within in five banking days following the day of presentation, but an acceptance advice must have to be issued.

Regards,
Shafique

John999 · Post by **John999** » Sun Mar 12, 2017 12:50 am

Thanks for the response Shafi. The confusing part was 756 being sent on maturity as well as during Acceptance, if during acceptance 756 is sent what will the value date of credit be in the field 33A.
If any straight trough processing logic is defined for incoming 756 how can a system identify if the incoming message is for Acceptance/ Payment?