Charges & Pricing check0 / 1 answered · 0 correct
Check 1
Is an advising fee the same as a confirmation fee?
LC Issuance, Advising and Handling Charges
Learn who may charge what before the first document is presented.
Issuance fee
The issuing bank may charge its applicant for establishing the credit. Pricing can reflect amount, tenor, facility usage, collateral and customer relationship.
Advising fee
The advising bank may charge for authenticating/advising the LC to the beneficiary. Advising is not the same as confirmation.
Handling and courier
Physical originals, document checking and courier services can create additional operational charges.
Who pays
The LC may allocate charges, but a bank’s ability to collect from another party can depend on arrangements. Read charge clauses and bank notices carefully.
Standards / source note: Bank charges and pricing are transaction-specific. Obtain the current tariff or quote from the banks involved; ICC rules do not set universal fee levels.
Remember thisHeadline LC amount is not the same as net cash the beneficiary receives after bank charges.
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