LC charges

DineshSharma · Post by **DineshSharma** » Mon Sep 10, 2001 1:00 am

When LC mode of payment is chosen by the seller over the Buyer suggested direct bank transfer mode of payment, should the Buyer bear the LC opening and execution charges, if yes, Why?

larryBacon · Post by **larryBacon** » Mon Sep 10, 2001 1:00 am

Any and all bank charges are entirely a matter of negotiation/agreement between applicant and buyer, regardless of the proponent party.

T.O.Lee · Post by **T.O.Lee** » Fri Sep 14, 2001 1:00 am

Dear Laurence,

In your comments, by "buyer" do you intend to mean "beneficiary"?

This sort of typo, though quite obvious on its face, cannot be checked by a computer software since AI is not yet fully developed.

T. O.

[edited 9/14/01 6:16:32 AM]

larryBacon · Post by **larryBacon** » Mon Sep 17, 2001 1:00 am

Thanks T.O. for spotting the typo. I did mean beneficiary.

PavelA · Post by **PavelA** » Wed May 08, 2002 1:00 am

Applicant should be also aware of the consequences of the article 18 UCP500 which states that where a Credit stipulates that such charges (for services re. L/C transaction) are for account of a party other than the instructing party (him), and charges cannot be collected, the instructing party (him) remains ultimately liable for the payment thereof“.

Pavel Andrle