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26/11/2024

The latest newsletter is now available in the members trade information section under the category of 'Newsletters'...more

ICC release Technical Advisory Briefing No. 11 - Definition of Trade Finance 19/09/2024

Recognising that there is no global standard for the defining Trade Finance, this Briefing document provides a suggested text and has been recommended for use by the ICC Banking Commisison Steering Committee...more

Latest Question

Branch 1 and Branch 2 of Bank A supply LC services for both the applicant and beneficiary. Applicant is a customer of Branch 1 and Beneficiary is one of Branch 2. LC stated: Field 41A: available with issuing bank by acceptance Field 42C: draft at 90 days from shipment date. Field 47A: Document presented under this LC may be purchased at sight by Bank B. Beneficiary presented a set of documents to Branch 2. On the list of presented documents under export LC of the beneficiary it is quoted “We have been sent a request for purchasing document under LC without recourse to Bank B. We require the issuing bank effect payment under this LC to Bank B’s account on maturity date after receiving advice of purchasing without recourse from Bank B”. A set of documents was presented through Branch 2 to the issuing bank (Branch 1). On covering letter, Branch 2 acknowledge the same meaning of the above-mentioned quotation to the issuing bank. However, issuing bank (branch 1) sent acceptance by SWIFT to bank B instead of branch 2 (presenter). Then, bank B purchased the documents against this acceptance. My questions are: 1. In case the applicant’s and beneficiary’s bank are different branch of Bank A, whether the acceptance only sent to bank B instead of the presenter is complying with international practice for LC or not? 2. Branch 1 must send his acceptance to branch 2 or not when they supply services for different customers is normal (without his acknowledgement as above-mentioned)?