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ICC Workshops in Thailand and Indonesia

16/09/2013 On 24th & 26th June, Gary Collyer delivered workshops on behalf of ICC Thailand and Indonesia to launch the ISBP in Thailand and Indonesia respectively. A presentation on BPO was also given in Thailand on 25 June.


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Recent News

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

A transferable LC was received and partially transferred to a 2nd beneficiary, with the major portion of the goods to be shipped by the1st beneficiary. 1st and 2nd beneficiary effected shipment for their respective portions. Payment Terms in LC: 70% payable at SIGHT 30% against Applicant's Acceptance Certificate Both 1st and 2nd beneficiary have received payment of 70% against their invoiced value. However, due to the outbreak of COVID, the underlying project was much delayed and could only be completed recently after the LC had long expired for a few years. Now, the 1st beneficiary has presented an Acceptance Certificate to the transferring bank for drawing of the remaining 30% payment under the transferable LC even though it is no longer valid. This would include the shipment made by the second beneficiary. Reason given was that the importers local regulation requires payment to be made under a letter of credit transaction. Question is: 1. Is there any risk for the transferring bank in handling the collection of the remaining 30%? 2. Should this be handled as a documentary collection if local law permits? 3. In case the issuing bank effects settlement of the 30% outstanding balance, is the transferring bank obliged to ensure that the 2nd beneficiary is being paid for their portion as well, notwithstanding that the transferred LC is closed in the system since it had long expired? (note: Transferor claims to have made payment of the 30% to second beneficiary directly but was not able to provide any proof of payment). 4) What would be your advice to the transferring bank for the handling of this kind of a situation?