QUESTION
Dear Mr. Old Man,
I would like to draw your attention to Field 46A (Documents Required). I see that this field always contains description of documents required to be presented under the LC. I wonder why the status of this field is O (OPTIONAL) and not M (MANDATORY).
Please help me clarify it.
Thank you in advance.
Best regards,
TTN
——
ANSWER
Hi,
It is agreed that as indicated by its name “Documents Required”, Field 46 would contain description of documents required to be presented. However, this is not always true in all cases. In case of a CLEAN letter of credit, it does not require any document other than a written demand for payment, usually a draft. Therefore, if it is a clean letter of credit, no documents are required in Field 46A.
Kind regards,
Mr. Old Man
anonymous
December 4, 2013 at 9:12 am
Anonyme writes:Dear Mr. Old Man,I used to ask myself the same question, but then I see that field 46A can also be shown in MT701, which means that it can be absent from MT700, so it is "optional" in MT700. With your clarification about clear letters of credit, I now understand more about this. Thanks for your answer, and everything else as well. From someone who always keep herself updated about your blog.
anonymous
December 4, 2013 at 9:12 am
Anonyme writes:By "clear letters of credit", I mean "clean letters of credit"Sorry for this typo
ha-tb
December 4, 2013 at 10:12 am
Hi Mr. Old Man,I am about to buy a small equipment (in both size and value – approx. $300) for my company from a Seller in Thailand. Since it's of small value, I think it'll be fine to just have a Purchase order (PO). However, this is the 1st time I buy goods without any sales contracts afterwards, I am not sure about the following things:1. We'll sign the PO, fax it to the Seller, he'll sign on the PO and fax back to us. Will the Bank accept that kind of supporting document for TTR payment method? 2. Is the PO signed by us only acceptable? We will later submit the bank the documents provided by Fedex (it's a door-to-door shipment), should it be enough? I am looking forward to your reply. Best regards,
mroldmanvcb
December 4, 2013 at 11:12 am
1) Yes.2) Yes. You are requested to provide your bank with your undertaking to later provide other documents required for an outward remittance. It depends on the goods that a customs declaration is required.
ha-tb
December 5, 2013 at 7:12 am
Thank you very much for your reply, Mr. Old Man. It was really helpful!
YoMan
April 20, 2017 at 11:10 am
Dear Mr Oldman I have a situation to wait your answer Please
My customer want to open LC with EXW price tearms. But field 46A request B/L and Insurance. The importer have the b/l and Insurance arranged by the third party. This B/L and Insurance attach with the document present to The exporter bank. Are there any problems in this LC???
mroldman
May 1, 2017 at 8:58 pm
ok if the beneficiary ok. The beneficiary is afraid he cannot obtain such documents from the third party to comply with the L/C requirement. It is normal that the beneficiary would act as the third party who helps arrange transportation and insurance for the applicant.