My question revolves around time Bill of Exchange required to be drawn under a usance LC issued against Acceptance/Negotiation.
It has come to my knowledge that based on the ICC Publication UCP vide revision no. 600 (further supported by DOCDEX Decision No 260 and ICC Opinion # R592/TA531) banks can devise a mechanism of saving applicable stamp duty without violating any provisions required as per country local law. This happens without changing the nature of the LC i.e. LC remains available by acceptance/negotiation and there is no element of deferred payment. The procedure banks would follow under this mechanism is:
1. Bank will establish Usance /Tenor LC available by acceptance/negotiation e.g. 90 days from BL date.
2. Upon receipt of shipping documents, customer will not be required to sign any Bill of Exchange for taking delivery of documents against their acceptance.
3. Customer will benefit by avoiding payment of stamp duty.
Keeping in mind the above, can someone please share the above quoted DOCDEX Decision and ICC Opinion and also share views on how would this process be practically possible in light of these opinions.