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Amendment for 2nd Advising Bank

Sat, 03/08/2008 - 09:26 — M. Obaid Rao

Hi to all. I am a new user and this is my first forum topic. I hope you all be able to learn more deeply and technically.

I want explaination about amend for 2nd advising bank. I transmitted LC through an advising bank A to 2nd advising bank B. After 2 days I received its acknowledgement. Now beneficiary has requested to amend the 2nd advising Bank B and I want to amend the 2nd advising bank B. As per ICC UCP600 how to amend the same and if I do not receive the acknowlegement of this amendment then what ? Pls have suggestions.

Thanks

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Sun, 03/09/2008 - 11:00 — pan

further details please

Hi friends,

further details necessary?Has the doc.credit been issued by SWIFT, the IInd advising bank was already indicated, the position of Ist advising bank, and the way the credit can be availed? So it will be possible to give a comment.

Thank you and

Ciao

Sun, 03/09/2008 - 05:37 — shahriar

yes

Yes, you can do that. But I will prefer to use a shortcut. Ask the 2nd advising bank to advice through the beneficiary’s bank!!

Shahriar

Sat, 03/08/2008 - 10:17 — shahriar

no way back

 

Dear Rao,

UCP article 9,

a. A
bank utilizing the services of an advising bank or second advising bank to
advise a credit must use the same bank to advise any amendment thereto.

As u can see that there is no provision in UCP to change the
advising bank. In my very short career, I have seen exporters who want to
change the advising bank for two reasons –

  1. they
    wanna get some credit
  2. the advising
    charge is too HIGH!!

I guess your exporter wants the 1st one. To me
there is no way back now/simple solution. You can either cancel the LC and reissue or go with
the existing as it is. One suggestion; make the LC freely available and ask the
exporter bank to check the authenticity with the issuing bank.

Shahriar

Sun, 03/09/2008 - 01:14 — nesar

advising bank

Dear Sir,

I know there are no UCP article regarding above, but the following procedures may be observed:

1. Send MT 799  to 1st advising Bank and inform him to received the advised credit and amendment (if any) from the  2nd advising Bank.

2. Send MT 999 to 2nd advising Bank and request him to call back upon all advised credit and amendment from the beneficiary.

3. ask the applicant to request the beneficiary to return all credit and amendment (if any) to 2nd advising Bank.

after completion of all events, when all advised credit and amendment (if any) are  at the 1st advising Bank's hand,

the issuing Bank send  through 1st advising Bank through new advising Bank.

This is solely my opinion, if any thing goes wrong way pls disregard it and correct me as well.

thanks nesar 

 

Sun, 03/09/2008 - 01:16 — nesar

advising bank

the last line will be

the issuing Bank send the new amendment through 1st advising Bank via new 2nd advising bank.