L/C rights and obligations

- May 15, 2018-

Witness

A person who points to a bank's application for opening a letter of credit is also known as a witness in a letter of credit.

Obligation: to open a contract according to the contract; to deliver a proportional deposit to the bank; timely payment of the redemption order.

Rights: Inspection and redemption list; inspection and return (all on L / C basis).

Note: there are two parts of the application for the opening of the certificate, namely, the opening application for the issuing bank and the statement and guarantee of the issuing bank (the ownership of the goods before the payment of the payment of the redemption bill to the bank; the liability of the issuing bank and its agent only on the surface of the documents; the issuing bank is not responsible for the errors in the delivery of the documents; it is not responsible for the "force majeure"; guarantees the expiry payment redemption. It guarantees the payment of all fees; the issuing bank has the right to increase the deposit at any time; it has the right to decide the insurance and increase the insurance level of the goods, and the expenses are borne by the applicant.

Beneficiary

The person who has the right to use the certificate specified in the letter of credit is the exporter or the actual supplier.

Obligation: when the letter of credit is received, it should be checked with the contract in time. The discrepant should ask the issuing bank to modify or refuse to accept or request the applicant to instruct the issuing bank to amend the letter of credit as soon as possible; if accepted, the consignee is sent and notified to the consignee and the documents are negotiated with the negotiating bank at the specified time; the correctness of the documents is responsible and should be carried out at the time of discrepancy. The issuing bank changes instructions and is still issuing documents within the time limit stipulated in the letter of credit.

Right: a revocation of a contract and a refusal of a letter of credit after a refusal to amend or modify the contract and to reject a letter of credit after the party is notified. If the issuing bank fails or unpaid, it can directly request the applicant to pay the certificate; if the applicant is bankrupt before the receipt, the goods can be stopped and handled by itself; the letter of credit is not used when the issuing bank fails. The applicant may be required to separate the applicant.