Letter of Credit Forum

yas  it is good site

The lC is at sight, there

The lC is at sight, there are no discrepancies and 12th July
received documents, from then on, what we should count, 5 working days
for payment?When there are more banks how many days we should wait?What
is the biggest delay you have from you practice.

regards,

phe9oxis,

http://www.guidebuddha.com

city banks.are providing commercel loans.

regards,

phe9oxis,

http://www.guidebuddha.com

Starting from April we proceed with one big order from Algerian client,
we work for a fisrt time. In end of May when we decided that there will
be no deal,, surprisingly we received the Letter of Credit. As we
negotiated terms of the LC we received it through 4 banks - one issuing
Algerian, one reimbursing Algerian, one advicing in Italy, and our bank
advicing as well. We negotiated several ammedments and it took approx
one month to start working. Now as we have already exported goods we
miss any payment. We have information that first documents.

regards,

phe9oxis,

http://www.guidebuddha.com

As we have 8 further deliveries by this LC we wander what we could make
in the future in order this system to start working better. One variant
is to pay to teh Italian Bank for confirmation - do you think this will
help us?What this confirmation means in fact? Another problem is that
according to our Algerian Client if we want confirmaton it must be done
once from the Algerian Bank and after this by the Italian - two banks to
give their confirmation?

regards,

phe9oxis,

http://www.guidebuddha.com

Hallo and thank you for

Hallo and thank you for comments. We forwarded the documents
directly to the issuing bank in order to save time and courier cost, it
is in compliance with the LC terms. From the client we had confirmation
and SWIFT message that the payment is ordered from the issuing bank to
the second Algerian Bank, and there finish the information. It is
interesting that this SWIFT is dated 12 th July, and today I understand
that value date is 25th July. The second Algerian Bank most probably is
going to forward once again the payment but nobody knows when. Our Bank
tried also to phone today but no information again.

regards,

phe9oxis,

http://www.guidebuddha.com

It's not clear whether the presentation was discrepant, or how the
documents were forwarded to the issuing bank (in compliance with credit
terms, or perhaps on approval ?).  In any case, if the documents
were forwarded under UCP600, the issuing bank should rightly have
provided a notice of refusal within the UCP prescribed time limits (14
b). Otherwise it must honour (7 a).

regards,

phe9oxis,

http://www.guidebuddha.com

It's not clear whether the presentation was discrepant, or how the documents were forwarded to the issuing bank (in compliance with credit terms, or perhaps on approval ?).  In any case, if the documents were forwarded under UCP600, the issuing bank should rightly have provided a notice of refusal within the UCP prescribed time limits (14 b). Otherwise it must honour (7 a).

An applicable delay payment interest may be applicable, but one would need to know the full history and timeline of the presentation. 

This is theory, but in practice, if the bank is not responding, (even after being reminded of its obligation under UCP600), I would suggest taking advice from legal counsel to pursue recourse. Whether such legal recourse should be pursued via the bank(s) or by yourself directly, would require a clear understanding the full history and breakdown of each intermediary banks' role in the transaction.

For future LCs, I would suggest that you arrange confirmation by a bank in Italy, and (most importantly) ensure that your documents are LC compliant.

Under my experiences up to this time, unfortunately there were no any transaction realized with north african  banks without any problem. Sometimes they send l/c even l/g in french, despite you send subsequent swift queries they never respond, morover if you dare to ring them up then you should speak french too....

First of all, despite I don't know the details of your amendment inquiries if these amendment requests are force majoire on your side you should not accept the said l/c  and of course should not advised to your customer too. Additionally, if you sent the docs following shipment to importer's bank, then it means you accepted the docs without amendment. Prior to send the docs, (as mentioning  as a condition to send docs) you can force your customer to force again the customer in Algeria and of course Algerian customer force to its bank::))   anddd consequently, the Algerian bank is obliged to reralize the requested amendments. At least, you can accelerate your chance to force by this way.

If I didn't misunderstand the said l/c is at sight. What is the code in field 41D of l/c ?? by payment?? by negotiation?? by acceptance?? Specially for negotiation type transactions, payment terms usually delay.