Bank A received a MT 710 from Bank B, which states "without our confirmation" in field 40B.
In field 49 of the L/C states "May Add".
Can the second advising bank , Bank A add its confirmation based on the wording in field 49? Or this instruction is only meant for Bank B, first advising bank?
Regards,
Shahed
Confirmation by second advising bank
Confirmation by second advising bank
Hi Shahed,
As per the SWIFT usage rules, F49 contains instructions for the receiver of the M700. If the receiver of the MT700 does not add its confirmation, and there is a second advising bank, then the receiver (as first advising bank) will advise the LC through the second advising bank by MT710 stating "without adding our confirmation". This does not pass on or transfer the authority of "may add" to the second advising bank. The second advising bank is not the receiver of the issuing bank's MT700. FYI, in the futurre SWIFT changes a request was made to consider changing the usage rules to provide clearer indication of which bank is authorized to confirm.
With kind reagards, Rita
As per the SWIFT usage rules, F49 contains instructions for the receiver of the M700. If the receiver of the MT700 does not add its confirmation, and there is a second advising bank, then the receiver (as first advising bank) will advise the LC through the second advising bank by MT710 stating "without adding our confirmation". This does not pass on or transfer the authority of "may add" to the second advising bank. The second advising bank is not the receiver of the issuing bank's MT700. FYI, in the futurre SWIFT changes a request was made to consider changing the usage rules to provide clearer indication of which bank is authorized to confirm.
With kind reagards, Rita
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SladjanaSkakic
- Posts: 57
- Joined: Fri Apr 05, 2019 5:27 pm
Confirmation by second advising bank
Hi,
I would like to add the following: if the L/C is not available with Bank A or with any bank in bank A's country, then bank A is not nominated bank, i.e. is not nominated under UCP to add confirmation, not even "silent".
Br,
Sladjana Skakic
I would like to add the following: if the L/C is not available with Bank A or with any bank in bank A's country, then bank A is not nominated bank, i.e. is not nominated under UCP to add confirmation, not even "silent".
Br,
Sladjana Skakic