Receiving Direct Presentation from a Second Beneficiary: What’s an Issuing Bank to Do?
How are LC specialists to understand UCP600 Article 38(k) in situations where a second beneficiary bypasses the transferring bank and presents documents directly to the issuing bank? Scenarios, fundamental issues, and a proposal for revising this UCP sub-article are addressed here.
Although ICC’s Technical Advisory Briefing No. 9 released in March 2024 addresses the subject of direct presentation of documents to an issuing bank, it did not take up the matter of it arising under a transferable documentary credit. Here, I would like to examine UCP treatment of such situations.
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