Black Friday Discrepancy
This Friday started really good! Good meetings – interesting cases – and soon weekend …
But then a case hit my mailbox. The sender (an LC officer at a bank) told me about a discussion with another bank – regarding this other bank refusal of document presented under an LC – basically asking for some arguments to support their case.
I get many of those – so I started reading the correspondence as I normally would … but – as I progressed I became increasingly sad…
Here is a (neutral) overview of the case:
LC field 50 Applicant:
Garment street 88
A presentation was made – including an invoice. This one showed in the top left corner:
Garment street 88
And then came the refusal from the bank:
“Invoice not made out in the name of the applicant.”
The presenter argued that it surely is. However NOT according to the issuing bank who “defended” their refusal by saying:
“There is no indication of “applicant” on the face of the invoice. The word “applicant” is not indicated. We cannot know who applicant is. There is just a name of a company, which is not consistent with “applicant,” “Buyer” is not always consistent with applicant, so this is definitely a discrepancy and deduction of USD 80 is right”
Oh my god!!!!
This is wrong for so many reasons that I do not bother mentioning them here … I am sure you know.
So I will only say this:
Perhaps the Trade Finance banks really do deserve that the LC ceases to exist. With handling like this no wonder why corporate customer do not bother working with LCs …
So – I have sadly marked this day in my calendar as “Black Friday Discrepancy” … it was on this very day that the ultimate murder attack was made on the LC.
Have a great weekend, take care of each other – and especially the LC … there are some really ignorant people out there trying really hard to kill it …
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