QUESTION Hi Mr. Old Man, I’ve been trying to find this information but couldn’t get a clear answer on Google. When an importer requests their bank to issue a usance LC, does the bank lock up the amount in his account until the LC reaches maturity? Thank you. Tengku —— ANSWER Hi, Whether a deposit is required for the issuance …

QUESTION Dear Sir How are you doing? If we show a round off figure of $625,000.00 instead of $ 625,000.05, Will it be a Discrepancy. The calculation is as below. Unit Price: USD 41,666.67 Qty: 15 Total = USD 41,666.67 x 15 = USD 625,000.05 But, if we show $ 625,000.00 in the Invoice and Draft, Will it be a …

QUESTION Hello Sir, I hope you are doing well. Sir, I have a query that I hope you can help me with. Sub-article 20 (c) (ii) of UCP 600 allows transshipment if goods are shipped in a container, trailer, or LASH barge. Why is transshipment permitted in these cases? Regards, Ahtisham Ali ————– ANSWER Hello, In my understanding, it is …

QUESTION Dear Mr. Old Man, I need your guidance in the following scenario: If a Nominated Bank has incurred its deferred payment undertaking or has accepted a draft drawn on it but fails to honour at maturity, then what options does the beneficiary have? Please clarify. Regards, Siva Prasad —— ANSWER Hi Siva, According to UCP 600 sub-article 7 (a) (iii) and …

QUESTION Dear Sir, I hope this message finds you well. I would like to seek your guidance regarding the handling of amendments to a Crude Oil Letter of Credit (L/C). At the time of L/C issuance, we received two proforma invoices indicating a unit price of USD 80.620 per barrel. Subsequently, the customer requested an increase in the L/C amount. …

QUESTION Dear Sir, Good day! I have one Doubt. L/C shows Field 50 (Applicant) as below: EAST AFRICAN PHARMACEUTICALS PLC ST. ST. SALITMEHERET CHURCH ROAD, NEAR TO JACROSHOUSING COMPOUND ROBERA COFFEE FACTORY TEL: +251116461456/57 TIN 0000034121 Whereas The AWB Clause shows as below: SIGNED AND STAMPED ORIGINAL AIRWAY BILL PLUS ONE COPY MARKED FREIGHT (PREPAID) ISSUED IN THE NAME OF …

QUESTION Hi Mr. Old Man,  How are you? Hope this email finds you well. I need your kind support in understanding UCP 600 ARTICLE 11. Please share any case studies or opinions shared by you for this Article. Regards Siva Prasad —- ANSWER Hi Siva, In fact, the provision in Article 11 of UCP 600 is very clear. If you read it carefully, you …

QUESTION Dear Mr. Old Man, I appreciate your insights on the following matter: Can a Letter of Credit (LC) be subject to both the laws of a specific country and the Uniform Customs and Practice for Documentary Credits (UCP)? Best regards, Zeev ANSWER Dear Zeev, In my 35  years of experience in trade finance, I have yet to come across …

QUESTION Dear Mr. Old Man, I seek your guidance on international trade practices concerning drafts in Letters of Credit (LC) transactions: 1. Under what terms of an LC is the presentation of a draft required? 2. Clarification on the role of a Nominated Bank: If an LC is available with Bank A for negotiation, how should the nominated bank be …

QUESTION Dear Mr. Old Man, I have a question regarding the presentation of documents after the expiration of an LC, as follows: • Date and Place of Expiry: April 18, 2025, in Vietnam • Latest Shipment Date: March 30, 2025 • Estimated Time of Departure: April 21, 2025 Given this schedule, I advised the beneficiary to request an amendment from …