International payment 4 th Edition World Trade Press
Discrepancies with Documents
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- Điều hướng trang này:
- Discrepancies with Documents • Bank Options
| Discrepancies with Documents
• Conformity with the Documentary Credit • The key issue is that the documents presented by the seller must be in conformity with the specifications of the documentary credit. Once again, banks deal in documents, not goods. The banks, therefore, are seeking conformity of the documentation to the wording of the credit and not of the goods to the documents. • The bottom line is that if the seller's documents are not prepared in accordance with the terms and conditions of the credit, the bank is under no obligation to pay the seller for the shipment. (Note the seller's document presentation checklist on the pages that follow.) 12 Discrepancies with Documents • Bank Options • Banks have up to seven banking days following the receipt of documents to examine and notify the party from which it received the documents of their acceptance or nonacceptance. If a bank involved in the transaction finds discrepancies in the documents, it has several options: • The advising or confirming bank can refuse to accept the documents and return them to the seller (beneficiary) so that they can be corrected or replaced. • The issuing bank, if it feels the discrepancy is not material to the transaction, can ask the buyer (applicant) for a waiver for the specific discrepancy, but must do so within seven banking days. • The advising or confirming bank can remit the documents under approval to the issuing bank for settlement. 13 Discrepancies with Documents • Bank Options • The issuing or confirming bank can return the incorrect document(s) directly to the seller for correction or replacement and eventual return directly to the issuing or confirming bank. • The bank can proceed with payment to the seller but require a guarantee from the seller to reimburse the bank if the issuing bank does not honor the documents as presented. • If there is a discrepancy, the buyer and seller must communicate directly and then inform the banks of their decision. In the case of serious discrepancies, an amendment to the credit may be necessary. • The seller may request the opening bank to present the documents to the buyer on a collection basis. However, the buyer may refuse to accept the merchandise and be responsible for shipping and insurance costs. 14 |