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ACCEPTANCE OF REALSE OF LC DOCS WITHOUT CHECKING FOR DISCREPANCIES

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Tue, 01/31/2012 - 23:53
aliimrancma
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Joined: 08/21/2011
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Hi All

Good day!

our buyer insists that he will request his bank to release the documents(discrepent, late shipment etc.) without checking for discrepanies in order to save his amendment charges and our discrepancy charges. keeping the risk aside whether he will do so or not, IS IT POSSIBLE FOR BUYER TO ACCEPT THE DOCS WITHOUT BEING CHECKED FOR DISCREPANCIES?? AND WILL THE ISSUING BANK ACCEPT HIS REQUEST EACH TIME WE HAVE SUCH SITUATION??. an earliest response will be highly apprecialbe.

Best Regards

Imran

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Wed, 02/01/2012 - 01:54
#1
phill doran
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Joined: 02/10/2009
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follow the yellow-brick process

Hello Imran

It is possible for the applicant to complete a written waiver, wherein they agree to accept all discrepancies.

However, the issuing bank’s willingness to accept this waiver must still be considered and would be determined by the issuing bank’s position in the credit.

Be guided by your bankers, but my understanding is that the applicant submits the waiver, the issuing bank will notify you via your bank and thereafter you can assume the benefits the waiver grants you i.e. make your presentation once the waiver is in place.

In my opinion, as there is an established process to follow, you’d be taking an unnecessary risk by acting solely on your buyer’s verbal assurance.

Cheers

phill

 “in the kingdom of the blind, what you see is what you get”

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