LC -Confirmation Charges

ATIFM · Post by **ATIFM** » Sun Aug 10, 2008 1:00 am

In the light of Article 37 of UCP600,
Is issuingbank still liable to pay the confirmation charges if it is on account of beneficiary where the beneficiary bank has failed to recover charges from the beneficiary at the time of adding confirmation.
Please comment on the same

KimChristensen · Post by **KimChristensen** » Mon Aug 11, 2008 1:00 am

Dear ATIFM

Yes they are – see ICC Opinion R.273 (Search “R273” in ICC Opinions search).

Best regards
Kim

DonSmith · Post by **DonSmith** » Thu Aug 14, 2008 1:00 am

It depends on the language in the credit. For example, if the credit says "may confirm at beneficiaries request and expense" or similar language, then the confirmer must collect from the beneficiary and I would NOT support a confirmer being able to claim on the issuing bank under Article 37.