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2 new ICC Opinions approved by the ICC Banking Commission

Yesterday, the ICC met to discuss (and approve) 2 new Draft Opinions.

The Opinions were: 

470/TA947rev: Deduction of issuing banks charges

The query concerned an LC that was unconfirmed and available and payable with the issuing bank. The LC did not include information as to who will bear the changes.

 When paying, the issuing bank deducted USD 54,000 arguing that this was according to the contract between applicant and beneficiary as well as “prevailing circular of our bank”.

 The main question asked was if the beneficiary should accept the deduction of the issuing bank’s charges.

The response from the ICC was “no”. Basically the issuing bank is obligated to recover these charges from the applicant elsewher >... Read The Full Post