third party documents
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GAMZEODABASI
- Posts: 3
- Joined: Fri Apr 05, 2019 5:18 pm
third party documents
A transferable L/C states that third party documents are acceptable and a beneficiary's declaration is required. In this situation which party should prepare the declaration - the first beneficiary, second beneficiary or any other third party? Acc.to art.21 the credit should stipulate by whom the documents are to be issued. In this respect, if a document's title such as "beneficiary's declaration" imply a specific party name, can it be interprete that the credit stipulate by whom the document are to be issued?
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bassilkelany
- Posts: 3
- Joined: Fri Apr 05, 2019 5:16 pm
third party documents
when the l/c is transferred on the issuing bankcounter from the 1st. beneficiary to the 2nd. this means that advising bank is now familiar with the 2nd. beneficiary and can can transfer the l/c and negotiate docs. on that ground, so i dont find any reason for accepting a third party docs., i also advise all tranferable LsC to include the following condition(transport documents showingconsignor of the goods aparty other than the beneficiary of this credit is not acceptable)
and then when beneficiary's decliration
is presented, negotiating bank can check
it on the same basis.
and then when beneficiary's decliration
is presented, negotiating bank can check
it on the same basis.
third party documents
ARTICLE 5 & 21 FOR LC INSTRUCTIONS
If the applicant intends a certain party to issue a certain document for certain data content, the LC should have stated clearly the name of the issuer of the document and its data content according to Articles 5 & 21 of the UCP 500. Otherwise according to Article 21, banks may accept the document as presented.
DUTY OF ADVISNG BANK
The advising bank should clarify these doubtful areas with the issuing bank before it advises the LC. It may advise the LC and inform the beneficiary of these unclear areas which would be provided by the issuing bank in the meantime.
TRANSFERABLE LC
A first beneficiary may not wish the applicant to know about the name and other particulars of the second beneficiary to avoid the applicant going directly to the second beneficiary for supply of the goods where the first beneficiary is a mere middle man. Hence the certificate from the second beneficiary may bring problems to the first beneficiary in such situation.
We are from http://www.tolee.com
If the applicant intends a certain party to issue a certain document for certain data content, the LC should have stated clearly the name of the issuer of the document and its data content according to Articles 5 & 21 of the UCP 500. Otherwise according to Article 21, banks may accept the document as presented.
DUTY OF ADVISNG BANK
The advising bank should clarify these doubtful areas with the issuing bank before it advises the LC. It may advise the LC and inform the beneficiary of these unclear areas which would be provided by the issuing bank in the meantime.
TRANSFERABLE LC
A first beneficiary may not wish the applicant to know about the name and other particulars of the second beneficiary to avoid the applicant going directly to the second beneficiary for supply of the goods where the first beneficiary is a mere middle man. Hence the certificate from the second beneficiary may bring problems to the first beneficiary in such situation.
We are from http://www.tolee.com