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Discrepancy in Bill of Exchange

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Thu, 11/05/2009 - 23:39
M.R. Shahbaz
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Experts opinion requested

Can issuing bank raise it to a discrepancy; where draft / bill of exchange only shows SWIFT CODE (without bank name and address) in drawee’s column whereas field 42A of L/C states SWIFT CODE along with bank name and address?

As per my understandings NO because swift code itself represents to the respective bank and its branch.

Comments requested.

Regards,

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Fri, 11/06/2009 - 01:10
#1
KKehrer
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Discrepancy in B/E

Dear M.R. Shahbaz ! Due to German law on Bills of Exchange (German Wechselgesetz) there is a requirement on drafts/BE, that the name of those party, which shall pay (i.e. drawee) is to be NAMED. So I think it is a discrepancy to insert only the SWIFT-Code, while this abbreviation does not clearly give the ADDRESS of drawee. Without further knowledge/look into the SWIFT-/BIC- directory nobody can find drawee´s address in case draft needs to be protested if unpaid. Furthermore I treat this as a fault in the IT structure of advising bank - it should be possible that the bank mirrows field 42A (really 42A ? - not 41A [available with ..]) in field 42D (drawee). I think we should also consider the country law of applicant and his bank as far as we can, if possible. Other comments appreciated. Rgds Kurt.

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Fri, 11/06/2009 - 00:21
#2
pan
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draft or B/E

Hi Friend,

Draft is not a requested document, if not called on field 46A, so it cannot rejected or refused. It is a question that can adjusted between banks and beneficiaries.

Other comment appreciated

Ciao

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Fri, 11/06/2009 - 00:39
#3
M.R. Shahbaz
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Draft/ B/E

It is also requested under field 46A.

Regards,

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Fri, 11/06/2009 - 12:58
#4
bob_exports
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Discrepancy in B/E

Many L/Cs are transmitted like this these days though it would be unusual to repeat just the SWIFT address as the drawee when mentioning the B/E in 46A too.  In my experience where an L/C only shows the SWIFT address as the drawee, we add the name of the issuing bank and possibly the address, as generally found elsewhere in the L/C. Some L/Cs also state the name of the issuing bank as drawee without an address which is also OK. However we have also many times presented B/Es with just a SWIFT address and they have always been accepted without discrepancy.

I suggest that German law is not really helpful as most German L/Cs I have seen avoid requiring a B/E, maybe because of the interpretation in German law!?

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Thu, 11/19/2009 - 07:06
#5
KKehrer
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B/E and German Law

Dear friend ! Thanks for Your comment. It was my intention to give a short view inside German regulations, which you may treat in a very domestic sense and interpretation. Just some minutes ago I had the chance to take a look onto an B/E showing in the respective space/field to drawee requesting for "Name and address of drawee". So I think the SWIFT-Code only is not enough under such circumstances.  Have a great day. Yours Kurt.

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Sat, 11/07/2009 - 01:47
#6
M.R. Shahbaz
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Discrepancy in B/E

Dear All,

Thanks for your valuable inputs.

Moreover, I have also discussed it with some of friends, alls are having different point of views.

Regards, Shahbaz

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