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Negotiating bank delayed documents to issuing bank

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Wed, 07/09/2014 - 01:36
asa7438
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Joined: 07/09/2014
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We were the seller and asked the buyer to open a LC, material was supplied and documents as per LC were submitted to the negotiating bank. the negotiating bank forwarded the documents to the LC issuing bank after 15 days period which was set on LC. the LC payment from the issuing bank was denied to us.

Earlier the negotiating bank has credited the LC amount in our account but later debited our account.

Question is in this scenario who is responsible for payment.

 

Please advice.

 

‹ T/T UNDER L/C ALLOWED insurance policy with the assured as "to order of issuing bank" ›
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Wed, 07/16/2014 - 08:10
#1
pan
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Joined: 09/13/2007
No Clear question

Hi Friend,

the l/c was available by any bank by negotiation, the negotiating bank receive documents timely by beneficiary, OK

Then negotiating bank send documents to issuing bank, in effect non advancing the amount to beneficiary, but acting on its nomination, the sending of documents has been effected in delay but due to art 35 it is ok.

So your bank may require the issuing bank to effe ct payment, if documents are compliant.

Other comments appreciated

Ciao

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Wed, 07/09/2014 - 22:09
#2
pan
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Joined: 09/13/2007
Art 35

Hi Friend,

I understood that the l/c was available by any bank or a bank in your Country by negotiation.

If it so beneficiary's liability ends when documents are presented to negotiating bank timely.

If the negotiating bank sends the documents to issuing bank later, it must indicate in the cover letter that documents were presented in time.

Delay is included in art 35.

Other comments appreciated

Ciao

 

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Tue, 07/15/2014 - 23:50
#3
asa7438
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Joined: 07/09/2014
art 35 details

Hi,

I did go over the art 36 and did not find any clear cut mention of delay. Please help me how to interpret this delay clause and also who is responsible for payment my negotiating bank or opening bank.

 

Thanks for all your help

 

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Wed, 07/09/2014 - 04:43
#4
pan
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Joined: 09/13/2007
Where was the credit available?

Hi Friend,

 

where was the credit available? If at your bank or nearby, presentation of compliant documents will suffice.

See art. 35 UCP 600

Ciao

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Wed, 07/09/2014 - 05:46
#5
asa7438
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Joined: 07/09/2014
Where was the credit available?

Hi,

Thanks for your reply.

We handed over document to our bank (advising cum negotiating) they verified the document and credited the LC amount in our account. Later the issuing bank raised a query saying documents were not received in time as per LC terms and denied payment to the advising bank. The advising bank in turn debited the amount from my account.

art 35 of UCP 600 talks about documents lost in transit but does it cover delayed documents.

I dont understand what you mean by Where was the credit available?

Thanks again.

 

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