ICC Digital Library Forum

Our bank issued a letter of credit for usd 10,450,000.00 covering an oil shipment advised through a bank in Lagos, Nigeria with their advising charges for account of applicant. The only role for this bank was to advise the credit since it was available for payment at our counters.
This bank has claimed advising commission of usd 76,700.00! With charges like that the staff must be on million dollar bonuses.
I shall offer to pay usd 500.00 or pay the full amount but deduct USD 76,200 in 'admin charges'.
Has anyone else experienced a similar situation?

Hi Phil!
Not come across charges as large as this
before, but have queried 'unreasonable' charges
many times normally with success. Once a bank is
asked to justify amounts, they often back
down.
Were you succesful or too soon to say?
Dave

David? Mr Meynell per chance? Come on, reveal yourself!
After discussing the matter with the applicant we remitted usd 500 on a take it or leave it basis. No response so far but I wouldn't be surprised if the bank resurrected this matter in 6 months time.

The advising fee is 0.734% on the value of the LC. This sounds unreasonable for the sole duty of checking for apparent authenticity.

I am from www.tolee.com

[edited 12/2/01 10:03:54 PM]