Home Mr Old Man Articles HOW TO PRESENT THE DOCUMENTS WHERE LC IS AVAILABLE WITH A NOMINATED BANK OUTSIDE THE BENEFICIARY’S COUNTRY

HOW TO PRESENT THE DOCUMENTS WHERE LC IS AVAILABLE WITH A NOMINATED BANK OUTSIDE THE BENEFICIARY’S COUNTRY

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QUESTION

Dear Mr Old Man,

We  received an L/C with the details as follows:

Sender: ABC Bank Singapore
Receiver: XYZ Bank Vietnam
Expiry date: 1/1/2017 in Vietnam
Available with ABC Bank Singapore by negotiation.

I see that L/C would be normally available with any bank in Vietnam or  with a named bank bank in Vietnam by negotiation. So, the beneficiary can present the documents to any bank or a named bank in Vietnam for negotiation. However, the L/C in this case is available with ABC Bank Singapore by negotiation. We do not know how to present the documents. Would you kindly clarify this matter for me?

Thank you so much!

T.T

———–

ANSWER

 

Hi,

I guess it is an MT710 (Advice of a Third Bank’s or Non-Bank’s Documentary Credit). This message is sent by an advising bank  which has received from the issuing bank or the non-bank issuer, to the bank  advising the beneficiary or another advising bank.

So, it is understood in this case that ABC Bank Singapore is acting both as the advising bank and as the nominated negotiating bank and that XYZ Bank Vietnam is acting as another advising bank.

The beneficiary may present the documents via a bank in Vietnam (e.g., XYZ Bank Vietnam) to ABC Bank Singapore for negotiation. The bank in Vietnam is acting as a presenter making the presentation on behalf of the beneficiary.

Kind regards,

Mr. Old Man

 

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