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Cancelling an NON-ADVISED SBLC and getting a refund of Opening fees from the Isssuing Bank

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Thu, 06/25/2015 - 08:50
samo
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Joined: 06/25/2015
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Hello,

We applied for a 12 months SBLC which expires next year 2015. Based on the draft, the beneficiary's bank gave us the OK to open the LC. The beneficiary's bank received the SWIFTed LC message from the Issuing bank but declined to advise the beneficiary and responded by SWIFT to the issuing bank that they could not advise the LC due to their internal policy and closed their file.

As a result I have paid a very large amount of money for an LC that is probably not worth the paper its written on and of course the sellers cannot do anything without the bank advise.

As the LC has no effect and have not been advised, and no one has drawn on it or benefitted in anyway, is the Issuing bank obligated under Law to return my money (fees) based on a failed transaction almost from the Onset?. This is not defined under UCP600 rules.

I am considering taking this up legally.

 

Samo

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Fri, 06/26/2015 - 13:09
#1
pan
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Joined: 09/13/2007
under control

Hi Friend,

if the guarantee is under controll of the issuing bank, the latter will cancel it and refund the commission you paid for one year,

just debiting opening costs, swift messages etc. If the guarantee has been issued under deposit of money, this amount will be refunded to you.

But you have to deal with your bank!!!!!

 

Other comments appreciated

 

Ciao

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