Confirm the Bank’s Position

The contact details for the issuing bank (or confirming bank as applicable) will be set out in the text of the LC. We recommend contacting the bank as many times as necessary to secure a confirmation as to whether (and if so, how) their LC drawing protocol has changed during COVID-19.

Submitting a Drawing Request

We also advise that submission of the drawdown request and all accompanying original documents should be made in person wherever possible. Sending by post/courier increases the risk of originals going missing, which could scupper the drawdown process entirely. We advise that such submissions are made as far in advance of the LC expiry date as possible – on account of the possibility that re-submissions will need to be made.

When making the submission in person, it is vital to keep a record of:

(i) The date and time of submission;

(ii) The name of the person receiving and signing for the documents; and

(iii) Confirmation from the recipient that they will immediately transfer the documents to the relevant department within the bank for processing.

Confirming Submission

Immediately post-submission of the drawing request, a confirmation email should be sent to the bank (with the beneficiary also copied) setting out the submission details as identified above. Thereafter, the process will require active management in terms of requesting status updates from the bank.

Rejected Submissions

Should the application for drawing be rejected, which is not uncommon, the immediate action points will be:

(i) To confirm the precise reason(s) for such rejection. If this is achieved by way of email, the submission reference as provided by the bank will need to be quoted;

(ii) To confirm the location of all original documents as submitted to the bank; and

(iii) To confirm that all such original documents will either be returned to the beneficiary or held by the bank.

Thereafter, when making any further submission(s) the above requirements relating to records of submission, confirmation email and status updates will again apply.