- E-ISSN2288-2766
- KCI
E-ISSN : 2288-2766
A Study on Documentary Letter of Credit Transaction based on Import & Export Procedure
Abstract
Purpose –In the credit transaction, the issuing bank must examine the documents to pay the credit amount. In order to smoothly execute the credit transaction, document review is a key element, so the 5th revised credit unification rule specifically defines the document review procedure. Research design, data, and methodology – The document review procedure specified in the UCP Rules can be largely divided into the document review period and the rejection procedure for inconsistent documents. First of all, confusion was caused by the ambiguous regulation that the review period of documents was considerable in the past, but now, after receiving the documents, a specific period of 7th bank business day is set. Result – With regard to the document review period, in the actual credit transaction, the issuing bank often negotiates with the issuing client about the waiver of the document inconsistency. Next, in the process of notifying the rejection of inconsistent documents, the issuing bank shall send the rejection notice in accordance with the requirements of promptly sending the rejection notice, describing all inconsistencies and disposing of the documents. Conclusion – This study suggests that the requirement to list all inconsistencies makes it impossible for the issuing bank to further notify the refusal, thereby limiting the right to defend against inconsistencies not listed in the first refusal notice and consequently having the effect of matching them. In addition, the issuing bank's rejection notice is closely related to the beneficiary's exercise of the right to replenish documents, because the issuing bank's document refusal notice determines the possibility of the beneficiary's exercise in the document.
- keywords
- Beneficiary, Issuing Bank, Documents Screening Period, Unpaid, Applicant
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