WHETHER THE BENEFICIARY CAN PRESENT DOCUMENTS DIRECTLY TO THE ISSUING BANK

QUERY FROM DR. MAX

I need some Advice from you as a Banker Regarding Documents called for in L/C if they can be sent Directly by myself via Courrier to the L/C Issuing Bank to receive Payment ??

I am a Supplier of some goods here in Eastern Europe and have been selling based on (T/T) / Advance Payment, but now due to the constant request of new buyers that we should accept CONFIRMED L/C 100% at sight from them as means of Payment, we have finnaly agreed to give it a Trail to begin bussiness by L/C 100% at sight Payment But the Problem here is that:

(1) We are based here in Eastern Europe ( Poland ) and Our Bank we use for Bussines is in USA ( Basically Offshore Bank )…, One of our New Buyer wants to Open and Confirm an L/C from his Bank in Europe ( in Germany ).

what i need to know is that, is it Possible & right according to L/C Practise for Me as a Seller to send the Completed Shipping Documents (as called for in the issued L/C ) Directly by myself via Express Courrier to the Buyer's Bank ( L/C Issuing Bank in Germany) ???? Insteed of me sending it by Courrier to my Bank in U.S.A and then my Bank sends it Back here to Europe ( Germany ) to the Buyer's / L/C Issuing Bank….

I am seeing this as a Waste of time for Documents Moving to USA., and then Return Back here to Europe, when i am here in Europe and can easilly Send the Documents via Express Courrier from here in Eastern Europe where i am (Poland) to Germany ( L/C Issuing Bank ) to receive Payment.

Please i need all your PROFESSIONAL ADVICE if this is right under the L/C Rules for me to do, and if the L/C Issuing Bank ( Buyer Bank ) in Germany will NOT reject the Shipping Documents & Reject Payment because i sent it directly by / from myself ????

Or, Must I ask the Buyer to make it Stated in the L/C that Seller is Allowed to send Documents Directly by himself ???

I await your ADVICES !!!

Thanks
Dr. Maxcim

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COMMENT
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Hi,

UCP 600 Article 6 (a) provides that “…A credit available with a nominated bank is also available with the issuing bank.”

So, you may make a presentation to the issuing bank bypassing the nominated bank.

Best regards,
Mr. Old Man
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For your further reference
Official Opinion R518 / TA519 rev – Unpublished Opinion 1995-2004

Where a credit has been made available with a nominated bank, the beneficiary may elect to present documents directly to the nominated bank or to the issuing bank. Presentation to the issuing bank is an acceptable act on the basis that it is the issuing bank that has provided its undertaking to honour complying documents. It should be borne in mind that the fact that a beneficiary presents documents to a nominated bank does not mean that this bank need perform in line with its nomination, and the beneficiary may have no choice but to present to the issuer for settlement.

In circumstances where the documents are presented directly to the issuing bank, the issuing bank would be entitled to seek certain assurances prior to effecting settlement. If there is a nominated bank (in the sense of a restricted credit), then it would be entitled to contact that bank to ascertain that no other drawing had been made which may draw into conflict the presentation received directly. If the credit is freely negotiable, the issuer should insist upon the presentation of the original letter of credit advice from the advising bank to view any endorsements that may appear thereon, in order to check the validity of the drawing before it. This stance is in line with the response given in opinion R 416.