Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

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Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by regina avelino on Mon Mar 05, 2012 12:14 pm

dear sir/madam,

good morning po ulit. meron po akong gustong iclarify. RA9184 provides that if a foreign bank issues bank draft/guarantee or irrevocable letter of credit, it shall be confirmed or authenticated by a (philippine) universal or commercial bank. foreign bank, meaning foreign bank operating in the philippines (HSBC, Standard Chartered, Deutsche Bank, Citibank, China Trust) or foreign bank not operating in the philippines? Meron po kasing isang bidder during our opening of bids na kinuwestion po yung company namin kasi yung isang bidder daw po ay HSBC daw po yung bid security nya. The bidder added that HSBC daw po ay isang foreign bank and kailangan daw pong i-confirm ng isang universal/commercial bank dito sa pinas. censya na po kung medyo babaw po ang query ko.... queen

please advise po

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Re: Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by Jovinal on Mon Mar 05, 2012 1:08 pm

It will be done during post qualification stage,
section 23.5.2.6. of IRR RA no. 9184 may guide you, XXXXXXX
If the prospective bidder submits a CLC, the CLC must be at least equal to
ten percent (10%) of the ABC to be bid. If the CLC is issued by a foreign
Universal or Commercial Bank, it shall be confirmed or authenticated by a
Universal or Commercial Bank.
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Re: Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by ikuz23 on Mon Mar 05, 2012 3:43 pm

regina avelino wrote:dear sir/madam,

good morning po ulit. meron po akong gustong iclarify. RA9184 provides that if a foreign bank issues bank draft/guarantee or irrevocable letter of credit, it shall be confirmed or authenticated by a (philippine) universal or commercial bank. foreign bank, meaning foreign bank operating in the philippines (HSBC, Standard Chartered, Deutsche Bank, Citibank, China Trust) or foreign bank not operating in the philippines? Meron po kasing isang bidder during our opening of bids na kinuwestion po yung company namin kasi yung isang bidder daw po ay HSBC daw po yung bid security nya. The bidder added that HSBC daw po ay isang foreign bank and kailangan daw pong i-confirm ng isang universal/commercial bank dito sa pinas. censya na po kung medyo babaw po ang query ko.... queen

please advise po

good day,

for bid security, yes it is correct, Irrevocable letter of credit issued by a
Universal or Commercial Bank: Provided,
however, that it shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a foreign
bank
. it is only 2% of abc not 10%. 10% in case of nfcc.
**The bid security shall be denominated in Philippine Pesos and posted in favor of the
procuring entity.

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Re: Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by RDV @ GP3i on Wed Mar 07, 2012 3:31 pm

regina avelino wrote:dear sir/madam,

good morning po ulit. meron po akong gustong iclarify. RA9184 provides that if a foreign bank issues bank draft/guarantee or irrevocable letter of credit, it shall be confirmed or authenticated by a (philippine) universal or commercial bank. foreign bank, meaning foreign bank operating in the philippines (HSBC, Standard Chartered, Deutsche Bank, Citibank, China Trust) or foreign bank not operating in the philippines? Meron po kasing isang bidder during our opening of bids na kinuwestion po yung company namin kasi yung isang bidder daw po ay HSBC daw po yung bid security nya. The bidder added that HSBC daw po ay isang foreign bank and kailangan daw pong i-confirm ng isang universal/commercial bank dito sa pinas. censya na po kung medyo babaw po ang query ko.... queen

please advise po

Itnis okey for the BAC to accept the bank-issued security, but during post-qualification it should verify if the issuing bank is a foreign bank, a commercial bank, or universal bank.

It is not always that if the bank is of foreign origin it is automatically a foreign bank. China Bank, for example is a Universal Bank. You will need to verify if the issuing bank, like HSBC, is a foreign bank or not. There are foreign banks which are already registered as local banks having availed of incentives under our banking laws.
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Re: Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by regina avelino on Fri Mar 09, 2012 9:44 am

thanks po sa inyong mga comments..... Like a Star @ heaven queen Like a Star @ heaven

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Re: Bank draft/guarantee or irrevocable letter of credit issued by a foreign bank

Post by Jovinal on Fri Mar 09, 2012 9:26 pm

Welcome po.
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