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Failure to advise refusal to confirm LC

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Thu, 03/17/2016 - 09:43
lanphuong162
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Joined: 02/17/2016
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In Feb 22, we received an LC available with any bank with the instruction: CONFIRM. We do not intend to confirm this LC and only intend to act as advising and presenting bank. However, we fail to advice our refusal to issuing bank, but still advice LC to beneficiary without confirmation. I just want to ask if such failure to advice our refusal to confirm to advising bank means that we accept to become confirming bank or not? And if beneficiary present complying docs to us, are we obliged to honor?

‹ ORIGINAL BL TRASFER L/C DOCUMENTS CHECK ›
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Thu, 03/17/2016 - 10:59
#1
pan
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Joined: 09/13/2007
art 8 d UCP 600

Hi Friend,

I think that you advise beneficiary without adding confirmation.

The fact that you do not inform the issuing bank may cause disputes outside the l/c, but in my opinion you are not obliged to act as confirming bank.

Naturally, the issuing bank may suffer problems and have costs, UCP 600 state that you have to inform about your non preparation the issuing bank without delay.

On the other side, having the issuing bank no credit line with your goodbank, it  should ask you before, to understand your intention.

Other comments appreciated

Ciao

 

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