JSHANOO’S QUERY
BRC against Confirmed LC
Hi All,
I have made shipment against confirm LC payment to be matured in 180 days, since it is usance LC.
Applicant has accpeted the documents, naturally my payment will mature in 180 days
Now my question is I have approached the bank for the issue for Bank Relisation Certificate for the further claimg of govt refunds. Govt dept has asked me to present the BRC, since it is irrevocable LC, they can refund the aganist the BRC. But my banker has refused to do so. saying that payment has not realised.
Kindly advice.
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MR. OLD MAN’S COMMENT
BRC
Dear Jshanoo,
The important thing is what is to be stated in the “so called” BRC. Your banker is not obligated to certify what is untrue or not yet realized. Yet, I think it will not refuse to certify (the truth) that you have realized the shipment under L/C No…… and that the documents for US$ …….. have been accepted and shall be paid on ….. , i.e., 180 days after sight/shipment date.
The matter remaining is whether or not such a BRC is acceptable to the government department.
Best regards,
Nguyen Huu Duc …
