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LC negotiation

We are a manufacturer in Bangalore, IndiaWe have  exported a machine to nigeria under the LC issued and confirmed by HSBC Johanssesburg and available with their branch in Bangalore.In terms of the LC, we have presented the documents for negotiation to branch in Bangalore routed through our regualar bank on completing KYC norms.Documents are held unprocessed with the above bank even after the lapse of 6 days without assigning any reason writing.  But on contacting in person, we are asked to open an account with them and this is not possible as our bank is not issuing NOC as according to them opening accout is not required.My questions :1. Is it correct on the part of bank to ask us to open current account as document are routed through our bank and this is a bank-to-bank transaction.2. In the case documents cannot be negotiated in bangalore, can the documents be sent to issuing/comfirming bank directly.3. In terms of article 14 of UCPDC 600, negotiating bank to examine the documents in 5 banking days  If they failed to do so, can it prossumed that documents are accepted and can we demand the payment.kindly enlighten me on the above issueParamesh  

Posted on 2013-02-14 23:26:43

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answering your questions as per experience :1. Is it correct on the part of bank to ask us to open current account as document are routed through our bank and this is a bank-to-bank transaction. answer :  if the L/c opening bank is demanding of opening up current a/c , this point should had been clarified by the bank itself in beginning in L/c clause.  and your bank is also right  that as it is bank to bank transaction , there is no need to open separate account and they will not issue NOC.secondly always rely on  ECGC, before making any transactions, always be insured in international trades. www.ecgc.inthey always provide cross checks and company's stability report before making any deal,and secondly they give you green signal of insurance , it means they take risk on your behalf, if payment is defaulted. hope you receive your payment soon, wish you luck regards,MOHHIT DANDWANIFASHION DESIGNER AND GARMENTS EXPORTER 

2013-02-14 23:26:43

thanks...[em19]

2013-02-14 23:26:43
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