Home › Forums › Best Deals (Banking/Shipping/Service Providers)

Clause 71b;

1 reply [Last post]
Wed, 02/13/2013 - 22:40
Iftikhar Ahmad
Offline
Joined: 02/12/2013
Printer-friendly versionSend by emailPDF version

We have haveay deduction in term of foreign bank charges, about 2 to 3% of our invoice value from korean region

under clause 71b; all bank charges outside are on account of beneficary.

How we can minmize these charges

‹ Benefits of Shipping Service? Presenter and Guarantor ›
Top
Thu, 02/14/2013 - 12:46
#1
mohit_ps
Offline
Joined: 02/14/2013
Stipulation of Bank Charges

Certain banks to accept the maximum payable charges condition for specifying the charges. Likewise you can stipulate the following clause in the 71B: All bank charges outside [Country of L/C Issuance] to the account of beneficiary subject to a maximum charge of USD _____.

Normally the bank should charge in case there are different correspondent banks in USA and beneficiary's correspondent bank, a maximum of USD 100 as cable charges. Certain banks however charge in lieu commission of 0.25% maximum of USD 125. 

My suggestion would be stipulate the maximum bank charges in your contract level itself and ensure same are copied as it is in the L/c.

Top