Confirmation Ceases For Discrepant Documents
Posted: Wed Sep 13, 2017 8:50 pm
Dear Experts,
please provide your opinion on the below.
''confirmation ceases for discrepant documents''
we had received discrepant documents for the confirmed LC which we forwarded to issuing bank as per presenter instrucitons. Post authority, we made the payment deducting our charges and one of the charges were confirmation charges which was booked at the time of LC advise/additing confirmation.
beneficiary now referring our standard verbiage which we usually send it to the beneficiary at the time of adding confirmation ''no confirmation undertaking for discrepant documents'' to refute the confirmation charges deducted.
How do banks cover this. By adding confirmation to this credit, they might have lost other lucrative business keeping in mind of the risk exposure taken for this particular letter of credit.
Just because beneficiary presented discrepant documents, should bank be in position to waive these confirmation charges?
Regards.
Dinesh
please provide your opinion on the below.
''confirmation ceases for discrepant documents''
we had received discrepant documents for the confirmed LC which we forwarded to issuing bank as per presenter instrucitons. Post authority, we made the payment deducting our charges and one of the charges were confirmation charges which was booked at the time of LC advise/additing confirmation.
beneficiary now referring our standard verbiage which we usually send it to the beneficiary at the time of adding confirmation ''no confirmation undertaking for discrepant documents'' to refute the confirmation charges deducted.
How do banks cover this. By adding confirmation to this credit, they might have lost other lucrative business keeping in mind of the risk exposure taken for this particular letter of credit.
Just because beneficiary presented discrepant documents, should bank be in position to waive these confirmation charges?
Regards.
Dinesh