Uncategorized NAME OF THE BENEFICIARY By Mr Old Man Posted on February 17, 2011 3 min read 4 0 2,966 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION FROM CAM NHUNG____________________________________ Dear Mr. OLD MAN, Thank you very much for your prompt reply during the last time. Now, I’m facing up with one case relating to name of beneficiary plus its branch or department or section. Recently, our bank issued some LCs in favour of Beneficiary including many branches, departments or sections. As agreement between applicant and beneficiary, LC must show general name of beneficiary plus its section or branch or department, for example, ABC Co., Ltd Section X or ABC Co., Ltd Trade Department. Unfortunately, docs presented as drafts, commercial invoice were signed by ABC Co., Ltd only. Whether or not our bank can raised the discrepancy : drafts and commercial invoice not be signed by the Ben stipulated in LC (Pls be noted that: LC required commercial invoice signed by ben) Hope your soon reply! Best regards,Nhung Ha Thi Cam (Ms.)Senior OfficerTrade ProcessingVIB ________________________________________COMMENT________________________________________ Dear Cam Nhung, It’s not a discrepancy unless the L/C clearly states that the name of the beneficiary signing the documents must include the section or the department exactly as indicated in Field 59. It is understood from the description that ABC Co., Ltd is the name of the company. Section X or Trade Department which is a division of ABC Co., Ltd is not necessarily part of the name of the company. That the documents are signed with the name “ABC Co., Ltd” is sufficient. There is a case similar to yours, which has been answered by ICC (TA708rev). The case is summarized as follows: LC shows:Field 59 (Name of the beneficiary): ABC LTD, INTERNATIONAL BUSINESSField 46A (Document Required): CERTIFICATE OF ORIGIN ISSUED BY BENEFICIARYCertificate of origin presented under the L/C was issued and stamped by ABC LTDIs it a discrepancy? ICC’s OPINION:The name of the beneficiary is ABC Ltd. International Business is a designation of a division and not necessarily part of the name of the company. The certificate of origin is signed by ABC Ltd. The document was issued by the beneficiary and there is no discrepancy. Hoping it is of your help. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?