Pre-advice Article 11 of UCP 600

ShahidRizvi · Post by **ShahidRizvi** » Sat Nov 06, 2010 12:00 am

i have the following questions on pre advice
1) Can the issuer cancel the pre-advice LC after issuance without consent from the beneficiary?
2) Can the bank add confirmation on pre advice LC?
3) As per UCP 600 there is no max period defined for issuance of full LC after pre-advice except mentioning without delay?
4) what are the advantages and disadvantages of pre advice?

NigelHolt · Post by **NigelHolt** » Mon Nov 08, 2010 12:00 am

The pre-advice originated when telecommunications were confined to cable / telegram and therefore it was expensive to send a credit by teletransmission. With SWIFT now in almost universal use for inter-bank communication there is little if any justification for pre-advices -as sending a credit by SWIFT is very cheap- and Article 11 has just been left in UCP600 (I am sure) 'just in case'.
[edited 11/8/2010 2:51:15 PM]

GlennRansier_ · Post by **GlennRansier_** » Mon Nov 08, 2010 12:00 am

Agree with Jeremy, little need to ever"pre-advise". They are "irrevocable" so cancellation cannot occur without all parties consenting and as you've mentioned, UCP indicates that the LC itslf will need to come into effect.