Letter of Credit Forum

Now question ?

1) If we want to make payment after receiving of copy documents, have
any problem ? or have any time frame to pay in this loss documents ?

2) Can we wait upto completion of documentation regarding releasing
of good via copy transport documents ? Because, Applicant wants document
to retire goods before making payment & issuing banks need
documents on complying presentation ?

regards,

phe9oxis,

http://www.guidebuddha.com

Hi friend,

as per art 35, you bear the risk of lost in transit documents. Beneficiary has right to be "paid" by presenting documents(complying) to the bank where the credit was available(with confirming bank,OK). Normally, in this case and when the transport document is a bill of lading issued in 2 or 3 originals, it is better to ask for a double sending; first set of documents, than second set within few days.

So check if the confirming bank has well worked, than you could ask for copy of documents(the bank has no obligo to send copies), ask applicant to get full documentation by the beneficiary per fax or e.mail. try to contact the shipping company for a delivery of goods without presentation of original bill of lading, but under a bank guarantee.

Unfortunately risk is yours and your applicant, but you can ask refund from the courier company, uhmmm:

other comments appreciated

Ciao and good luck