Dear all,
I have received namurous Letter of Credit documents today, but 2 of them, the covering letter does not state that LC CHARGES HAS BEEN COLLECTED, AND THAT ORIGINAL LC HAS BEEN ENDORESED ON THE BACK.
What to do regarding these things missing sentences.
DO NOT WORRY ON CHARGES
We are dealing hundreds of L/C every month. I have never seen backside endorsement of the L/C . We are getting the L/C endorsement on the front side. Some banks mentioning operative instrument and some negotiable copy, authored persons name and signature.
Regarding the advising charges of the L/C, it will automatically debit from your a/c, if you have with them. Otherwise no bank is issuing the original L/C without payment. Some cases they will debit their charges from the proceeding of the negotiated documents. So, do not worry. Contact: tulsipillaiex@hotmail.com or tulsiusha1@yahoo.com RegardsTulsi/ Dubai
Contact the presenting bank
and try to find out if their charges have been paid.As for the endorsement you may contact them for that matter too in case that lc has been issued as freely negotiable.
Whu only freely negotiable
THanks for answer, but is endoresement used for freely negotiable documents, can you explain more please
Endorsement is usually only necessary for freely negotiable L/Cs
The reason is that otherwise the beneficiary could present various sets of documents at various banks and more than the total L/C amount could be drawn.
Concerning presenting bank charges, you shouldn't worry. If advising bank charges are for account of beneficiaries', you should ask them whether their charges were paid or not. Unfortunately, I have to do this regularly, too.
-Each long journey starts with a small step-
Best regards
Frammi