D/P collection showing L/C No.
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Suchan
- Posts: 1
- Joined: Tue Jun 14, 2011 11:09 pm
- First Name: Su
- Last Name: Chan
- Organization: HK
- Filter: Two Plus Two =: 4
D/P collection showing L/C No.
We are the L/C issuing bank. We have received one set of documents (usance bill) from presenting bank with covering letter showing docs for collection subject to URC522. Since all the documents showing L/C no., we checked the docs according to L/C terms and UCP and sent out our advice of refusal MT734 indicating the L/C No. to advise the discrepancy to presenting bank. Payment of this bill was effected at maturity date after receipt of applicant's acceptance. However, presenting bank claimed that it should be processed as a collection and asked for refund of charges. We are surprised that why they did not send us clarification if documents should be handled under URC 522. Please comment.
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Collection vs availment
Hi Pal,
today I have the same problem, but the issuing bank ask for a message stating that we were on the UCP 600.
IMHO, it depends on the position of the remitting bank, if it is an AGENT, nominated bank, the documents could be sent under UCP 600, but if it is not indicated in the l/c , for this bank the sending represents just a collection under URC 522. Is the way of settling that will indicate UCP 600 and the l/c number. In your case you have to follow the instructions contained in the remittance letter, probably due to maturity or discrepancy in documents it should be easier to present it as D/P instead of L/C. Charges than play an important part, specially when them are for beneficiary's account.
In my case, for future sendings, i will add to the printed conditions in the remittance letter:" AND UNDER UCP 600 IF APPLICABLE"
Other comments appreciated
Ciao
today I have the same problem, but the issuing bank ask for a message stating that we were on the UCP 600.
IMHO, it depends on the position of the remitting bank, if it is an AGENT, nominated bank, the documents could be sent under UCP 600, but if it is not indicated in the l/c , for this bank the sending represents just a collection under URC 522. Is the way of settling that will indicate UCP 600 and the l/c number. In your case you have to follow the instructions contained in the remittance letter, probably due to maturity or discrepancy in documents it should be easier to present it as D/P instead of L/C. Charges than play an important part, specially when them are for beneficiary's account.
In my case, for future sendings, i will add to the printed conditions in the remittance letter:" AND UNDER UCP 600 IF APPLICABLE"
Other comments appreciated
Ciao