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Documents to Applicant instead of Bank

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Wed, 06/30/2010 - 10:31
Debrose
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Joined: 06/30/2010
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Hello ,  I'm looking  for some feedback on an issue.

 Long time customer but lots of problems on past LCs.  To help ensure  payment would be received prior to cargo being received; We requested an amendment to 46A5)  SIGNED BENEFICIARY'S CERTIFICATE , CONFIRMING THAT ALL ORIGINAL DOCUMENTS REQUIRED WERE SENT TO APPLICANT VIA COURIER.   Changing  the word APPLICANT to BANK.

 This was the response:

Customer requests dropping the request for change in clause 46A5 …. Customer requests documentation be presented to the     applicant and not the bank: the issue is timing … the port of entry is not in Asuncion, thus transit time needs to considered for over-the-road delivery; if the documents are released to the bank first, it can take another week to get them accepted, only then permitting the goods to leave the port facility for the trek to Asuncion

I'm not sure if I should accept their request.

‹ only signature WHAT IS THE MEAN OF PTO SHANGHAI? ›
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Wed, 06/30/2010 - 20:21
#1
Abrar
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Joined: 03/12/2009
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Documents to applicant

If all original documents are going direct to the applicant, and the only douments required to be presented under the LC are an invoice and your declaration of despatch, then this works in your favour, and you are likely to receive payment much quicker from the issuing bank, and less likely to present discrepant documents.

But, this raises the question as to why an LC would have been required in the first place, as the bank's responsibilities in document examination are diluted, and exposes the applicant in being financially commited, even in the case of documents lost in transit, and regardless of whether the documents meet the contract terms. There is not much of a role for the bank to play in this transaction.

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Wed, 06/30/2010 - 13:14
#2
pan
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Joined: 09/13/2007
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understanding

Hi Friend,

I understand that your customer/ l/c Applicant needs documents, and you need to be paid. If the l/c become payable against a simple declaration that you have sent documents to applicant, if this l/c is available at your bank, and moreover "confirmed", I will accept it. Once it was a Clean Credit.

However you must be sure that when original documents leave your hands, you can cash the l/c amount.

Good luck and sorry if I have all misunderstood

Ciao 

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