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UCP 600 Payment Terms

What is the maximum time allowed for payment if documents submitted under sign L/C? Can we hold the documents till arrival of vessel for retirement?

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Question added by Malik Muhammad Saeed , Manager Procurement & Imports , Karachi International Container Terminal Limited
Date Posted: 2014/01/23
Deleted user
by Deleted user

The maximum time for payment of variable 

According to a review of documents in place of the sender's bank or Recipient 

But in the normal you can not exceed1 week after delivery of documents 

 

- Has to be delivery of documents 

At the time, located in the L / C 

So is not the work of any fines

Sohel Shams
by Sohel Shams , Vice President , Meghna Bank Limited

Banker deals with the documents, not goods. So if  documents are okay as per LC, if there are no discrepancies, in that case, documents cannot be hold. If the LC is sight, payment has to be made within5 working days.

Amila Cooray
by Amila Cooray , Junior Executive II , SAMPATH BANK PLC

Within5 banking days

RAM KRISHNA BANERJEE
by RAM KRISHNA BANERJEE , DEPUTY GENERAL MANAGER , RAHUL HI RISE LTD

The Latest UCP6002007 as ammended the maximum time the L/C issuing banks get for the confirmation of the Payments is only3 days and for the discrepency notice is only5 days. If the L/C issuing bank fail to do so, then they are liable to pay the banking interest and also the damages to the concerned Exporter. But within7 days the Payments from Nostro get credited to the Exporters Bank Account.

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