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Acceptance of Export Documents

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Fri, 09/10/2010 - 14:24
Global Traders
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If the negotiating bank found the documents are compliant in accordance with the confirmed L/C and discounted the bill after scrutinizing the export documents then Can L/C issuing Bank / Buyer refuse to accept the documents / payment? The buyer is saying that they do not need the goods now as it is much delayed. Whereas the goods are shipped within the prescribed time as per L/C. The negotiating bank is an international first class Bank who confirmed the L/C also in clauses available with…by and drawee is the same bank. In this case can the issuing bank / buyer refuse to accept the docs / payment by showing any small discrepancy?

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Mon, 09/13/2010 - 13:36
#1
KKehrer
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Acceptance of Export Documents

Dear Global Traders !

I think we should know what discrepancies were found - I suppose they are "created/searched for" to get out of the obligations of the L/C and or basic contract. How about consignee in the transport document ? This is - in my view - one the most important points to be cared about: You should be in the position to get the merchandise back WITHOUT further assistance of consignee unless "to order" in connection with L/C requirements.

Please post the discs.

Meanwhile kind regards

Kurt

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Mon, 09/13/2010 - 06:28
#2
bob_exports
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Joined: 10/11/2009
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Acceptance of Export Documents

It would be interesting to know exactly what these "small" discrepancies are. Maybe they are fictitious in an endeavour by the issuing bank to assist its client (oh, that would never happen!)

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Sun, 09/12/2010 - 11:39
#3
Abrar
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Joined: 03/12/2009
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Discrepancies

An issuing bank is obliged to reimburse a nominated bank under the latter's negotiation of compliant documents. However, the issuing bank will conduct its own independent examination of documents, based on which, it will agree to honour or refuse. If the issuing bank subsequently finds the documents to be discrepant, and has already paid the nominated bank, it would claim refund with good value.

Any rejection must be based on UCP provisions, and would not necessarily be based on a subjective opinion as to whether discrepancies are "small" 

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