ITA 403-0101 -LC-SWIFT-LUCKY

ITA 403-0101 -LC-SWIFT-LUCKY - THE ADVICE AND THE LETER OF...

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THE ADVICE AND THE LETER OF CREDIT Advice of the credit means a formal notification by the advising bank to the beneficiary that the credit is now available. Advice of a letter of credit is only an advice. It does not commit the advising bank to any action other than to inform the exporter of the letter of credit. The advising bank may advice the credit either with a covering letter containing important information about the bank and attaching the credit print out and forwarding it to the beneficiary( Example in the next page) or simply by stamping the SWIFT message with important information about the bank and faxing it or otherwise forwarding it to the beneficiary as shown below. Stamp method The signature, initial, or stamp is the bank’s statement that it has authenticated the credit. UCP 600 Article 9 (b) reads “ By advising the credit or amendment, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received”. UCP 600 Article 9 (d) reads “ a bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. UCP 600 Article 9 (e) reads “ if a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit, amendment or advice has been received. UCP 600 Article 9 (f) reads “ if a bank is requested to advise a credit or amendment but cannot
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