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Under UCP 600 47B sub Clouse no 4A Reimbursment fee deducted from Document Amount

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Fri, 07/30/2010 - 22:30
syedfirasath
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Joined: 01/14/2009
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Dear Experts.
with the reference of Documentary credit Number 12301003169-L issued by Standard Charterd Bank ,
we make the lc wiht SCB in USD. Document submited without discrepancy and clean OF USD.220,192.5/- .but we recieved only USD.219,554.03. this different is =225/- while i enquire about this matter to  my tradefinance they informe me this is Reimbursmet and negotation bank charges as per under 47B.4A .even we metion that our charges in our account Applicat Charges in Applicant bank acocunt. they Dedeucted form our each presentation of USD.225.00 UCP 47B.4A and 6 , clouse . Plese can you advice me how i can avoid this charges. if any amendment to advice applicant to save this charges in Benifeciary Account.
kindily i request you to Advice me
Thanking you
Best Regards
Syed Firasath Ali
UAE

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Wed, 08/04/2010 - 03:09
#1
laxman12 (not verified)
International finace.

kindily i request you to Advice me.

international finace.

 

regards,

phe9oxis,

http://www.guidebuddha.com

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Sat, 07/31/2010 - 00:58
#2
pan
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Joined: 09/13/2007
Posts:
L/C costs

Hi Friend,

Handling an l/c produces charges and costs that buyer/seller try to avoid or not to mention on the trade contract. So it is normal that l/c will be claused with "costs ... to be borne by beneficiary..etc" Someone must indicate which are the costs:

opening, advising, confirming, paying, negotiating, accepting, amending, reimbursing, documents sending, refusing etc. so you will be sure that the transaction has a fixed cost.

Probably the amountof usd 225, 00 refers to the reimbursing bank fees, your bank claim reimbursement from a US Bank and this bank had been authorized to retain its own commission from proceeds.

Many banks in Internet indicate the cost for L/C, so it is possible to plan the effective costs.

Please check ICC Opinion no. TA700 rev, with your bank, for  complete details.

Other comments appreciated

Ciao

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