DEDUCTION OF DISCREPANCY WITHOUT GIVING NOTICE OF REFUSAL

2 Comments

1. 

   Phuong Mai

   January 18, 2019 at 9:59 pm

   If our bank (issuing bank) sent MT756 and MT202 at the same time to the presenting bank (still within 5 working days after the date of receiving docs), is is correct? or we must send MT799 or MT734 before getting the applicant’s waiver for discrepancies? Incase, we sent MT 799 or MT734, and then the applicant accept the docs and made payment, is necessary for our bank to send MT202 and MT756 at the same time?

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• 

  Mr Old Man

  January 22, 2019 at 2:57 am

  MT 756 is sent by the issuing bank to the bank from which it has received documents or by the reimbursing bank to the bank from which it has received a reimbursement claim. It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.

  MT 756 is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit for which no specific reimbursement instructions or payment provisions were provided.

  When the issuing bank decides to pay or reimburse, MT 202 and MT 756 can be sent at the same time.

  If the documents contain discrepancies the issuing bank decides to refuse the documents pending the applicant’s waiver, it may send MT 734 to the presenting bank advising of the same.

  If the documents contain discrepancies and the applicant agrees to waive the discrepancies before the issuing bank MT 734 to the presenting bank and the issuing bank accepts the waiver, there’s no need for the issuing bank to send MT 734 unless it wants to earn discrepancy fee.

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