How to get Export Payment for Discrepant Documents under LC? By Isaac Tudu
How to get Export Payment for Discrepant Documents under LC?
As an Exporter (Beneficiary), we have received an Export LC and are happy that our payment is assured. But export payment under LC is assured only when we are able to submit a complying presentation to the Bank. Data reveals that approximately 70% of documents presented under LC get rejected on the first presentation.
After receipt of LC, we scrutinise each & every terms and condition of the LC and prepare the documents accordingly. Documents are presented to the nominated bank / confirming bank well within the period of presentation. But nominated bank after scrutinising the documents determines that the presentation does not comply and documents are discrepant, so they may refuse to honour or negotiate.
Now, our export payment is not assured. So what are the options available to the beneficiary? Whatever course of actions I have suggested in this video are not covered under UCP 600, therefore, most of the LC expert would not agree with what I have suggested to the beneficiary. But the beneficiary may explore these options with the bank to get the export payment.
About Speaker:- Isaac Tudu is an ex-banker with India’s largest Banks i.e. ICICI Bank and State Bank of India having more than 25 years of banking experience in Trade Finance and Credit with ICC certifications like CDCS, CSDG & CITF etc. Isaac’s Vision: To create a financial world where SMEs are well conversant with Trade Finance without any ambiguity. Isaac’s Mission: To help 100,000 SMEs to achieve their Sales & Business Growth drastically by enabling them through the "Hassle-Free Trade Finance" Online Programme.
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