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:
Textiles inc.
Garment street 88
Country X
A presentation was made – including an invoice. This one
showed in the top left corner:
Quote
Buyer:
Textiles inc.
Garment street 88
Country X
Unquote
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 …
Best regards
Kim