Article 16c(iii) (b)

[PhanThanhNhan]

Dear all,
We would like to have yr opinions on our following situation:
We are the confirming bank that received the disc docs. We advised the negotiating bank our refusal to honour the docs due to some disc. Can we state in our refusal message that we are holding the docs until we receive a waiver from the issuing bank and agree to accept it or receives further instructions from the negotiating bank to agreeing to accept a waiver (article 16c(iii)(b)). In otherwords, is the stipulation in article 16c(iii)(b) used for the issuing bank only or for both the issuing bank and confirming bank
Tks

[NigelHolt]

It is for the issuing bank only.

[MohammadS]

If we see, logically it is for the issuing bank coz it is the bank who deals with the applicant for a waiver of discrepancies. But again logically speaking it does not restrict to hold the docs by a confirming bank if the communicate the discrepancies to the issuing bank to take a call by referring this to the applicant for a waiver or to refuse it.

Regards,
Sohail

[GlennRansier_olsABN]

Safest course is to await instructions from the presenter on the discrepancies. However, from experience not all presenter's promptly respond. If you decide to contact the issuer, you could site 16. c. iii.a.

[GSham]

The documents belong to the beneficiary. The confirming bank should, upon rejection of the documents, either return the documents to the beneficiary or act on the beneficiary's instruction (hold the documents pending the beneficiary's instruction, or act on the instruction previously received from the beneficiary.) It is only at the instruction of the beneficiary that the confirming bank should contact the issuing bank for approval of the discrepancies. Hence 16(iii)(b) should not be used by a confirming bank.
[edited 11/18/2011 8:52:50 AM]