Dear All, 

I want to share an unhappy experience for a transaction under LC from my customer in Morocco. The LC was issued by a notorious French bank and advising through their HK office to us under confirm basis. We accepted to add confirmation on it. Now, it was the third and last shipment effected on 11 Arpil 2008. Unfortunately, we delay the shipment for 1 day. It caused a discrepancy of  “late shipment”.  This LC was “90 days after B/L date”. Definitely, maturity should be on 10 July 2008. We instructed our banker to chase the French bank HK office for payment many times. Their reply was “waiting for acceptance from LC applicant”.  

On the other hand, we checked with shipping company and obtained evidence that LC issuing bank endorsed the B/L to LC applicant on 4 June 2008 and my customer collected the goods on the next few day. Until 24 July 2008, LC issuing bank sent a telex advice to my banker and confirmed to accept maturity as 25 July 2008. My question is what support LC issuing bank to delay payment for 14 days and cheated us that applicant had not accept the bill. We instructed our banker to send telex to them asking why the bill mature on 10 July 2008 but accepted on 24 July 2008 whereas applicant collected goods on June 2008. However, the French bank HK replied that “The issuing bank informed their acceptance on 24 July 2008 and matured on 25 July 2008. Therefore, there was no delay payment at all”. That’s terrible. They are trying their effort to hide the fact.  

Who can make the justice?

Thanks

Fei Hung