Mr. Old Man For those who eat, sleep and breathe Letters of Credit & Cycling

QUESTION Dear Mr. Old Man, As far as I know there are only two types of collection: D/P (Documents Against Payment) and D/A (Documents Against Acceptance). However, I’ve just heard about a strange collection: D/P at xxx days after BL date. Please let me know if there is such a strange collection. If there is, what is the difference between …

QUESTION Kính gửi anh Old Man, Hiện nay em cũng đang nghiên cứu về sản phẩm BPO, tuy nhiên còn khá mới mẻ tại Việt Nam. Anh có thể chia sẻ với em một chút kiến thức về sản phẩm này không ạ (phương thức giao dịch, …). Em cảm ơn a nhiều ———— ANSWER Hi, Cung cấp cho bạn …

QUESTION In response to a query at http://letterofcreditforum.com/content/i-need-some-clarification-regards-lc, you wrote: “Different from LC available by payment, LC available by negotiation allows the beneficiary to receive the payment by negotiating the sight drafts and documents at a nominated negotiating bank which is normally located in his country. The negotiation may be effected on a with or without recourse basis”. I do …

QUESTION Dear Sir. Need a clarification on transferable LC regarding clause 42C. – If the original LC mentions LC at sight, can the 1st beneficiary change this to LC 30 days usance when transferring this LC to the 2nd beneficiary ( if the 2nd beneficiary agrees to LC 30 days). If a sight LC is transferred as a sight LC, …

QUESTION The LC was issued for $8,000 showing as follows: – Field 45: Commodity: Fabrics Total amount: $10,000 TT advance $ 2,000 – Field 46: Insurance cert cover for 110% invoice value Documents presented: – Invoice shows: Commodity: Fabrics Actual shipped goods amount: $10,000 TT advance $ 2,000 Invoice amount: $8,8000 – Insurance Certificate shows: Sum insured: $8800. Is the …

QUESTION Our company is specialized in importing P-phones. Our policy is that the quality, quantity and condition of the goods must be checked at our end. If the goods are satisfactory we will sign Hand Over Certificate which is the key document to trigger the payment. According to the contract we have to open a letter of credit in favour …

QUESTION LC states: – Special condition: Documents showing anycorrections without authentication by the issuer are not acceptable. – Invoice must be certified by Chamber of Commerce – Trade terms: CFR ADEN SEAPORT YEMEN The presented BL shows the letterhead of PIL Pte Ltd andis signed by PIL Vietnam Co., Ltd as Agent for the Carrier:PIL Pte Ltd. The presented invoice …

QUESTION Dear Mr. Old Man, I follow up your blog and see it very helpful. I have a question for you. Bank B sent Bank C an MT 710 showing some details as follows: Field 40B (Form of Documentary Credit): IRREVOCABLE ADDING OUR CONFIRMATION Field 52A (ISSUING BANK): BANK A Field 41A: (Available with … by): BANK B BY NEGOTIATION …

QUESTION Dear Mr. Old Man, Mr. Old Man cho em hỏi nghiệp vụ CAD xuất khẩu và nhập khẩu được thực hiện theo trình tự như thế nào?  Em làm TTQT nhưng chưa thực hiện nghiệp vụ này bao giờ mà chỉ được nghe qua thôi nên không hiểu rõ lắm. Mr. Old Man có thể giúp em hiểu về …

QUESTION Dear Mr. Old Man, I have the following case that needs your advice: A seller signed a contract to sell sea products to a buyer in Italy. After the shipment was made, the seller presented the documents under D/P terms to his bank (remitting bank) and asked for discounting. The remitting bank discounted the documents on a with recourse …

QUESTION Dear Mr. Old Man If B/L dated 4 months before LC issuance date, is it acceptable? Do we consider as stale B/L? However, the documents were presented within presentation period as LC called for 21 days from LC issuance date. Special condition also stated that documents issued prior to LC issuance date is acceptable. Can we take the B/L …

Sáu năm trước, trong một chuyến đạp xe chinh phục đèo Hải Vân, Mr. Old Man ghé quán cà phê “Hòn Đá Cụ Rùa”. Dịp ấy, Mr. Old Man đã viết bài Check-in Hòn Đá Cụ Rùa, trong đó có đoạn: “Cách chân đèo Hải Vân chừng 6 km có một dãy quán cà phê xóm núi nằm chênh vênh …

One reader recently sent Mr. Old Man four questions about confirmed LCs. By the time he finished reading them, he realized they were not four questions at all, but at least fourteen! Since many trade finance practitioners encounter similar issues—particularly regarding a Confirming Bank’s obligation to honour or negotiate—Mr. Old Man decided to answer them all in one article. Hopefully, …

Trust Receipt financing is a common facility used in import trade, yet many practitioners still associate it exclusively with the bank’s control over the bill of lading or other title documents. But what happens when the bank no longer holds those documents? Can Trust Receipt financing still be granted? A reader recently raised this practical question.   Question Hi Sir, …

A reader recently raised an interesting question concerning a Certificate of Origin that indicated the origin of the goods simply as “EC”. The credit required the presentation of a Certificate of Origin but did not specify any particular country of origin or geographical place. The question was whether a Certificate of Origin stating only “EC” would satisfy the documentary requirement. …

Sáng nay có người gửi lời chúc mừng Mr. Old Man nhân Ngày Báo chí Cách mạng Việt Nam 21-6. He he, chắc bạn ấy đùa vui thôi. Theo Luật Báo chí, nhà báo là người hoạt động báo chí và được cấp thẻ nhà báo. Những người viết nhiều như Mr. Old Man, dù cũng có không ít bài …

Hơn mười năm trước, Mr. Old Man từng vác xe men theo sườn đèo Hải Vân xuống bãi biển hoang vắng để khám phá ngôi làng từng là nơi trú ngụ của những bệnh nhân phong. Thời điểm ấy, chính quyền thành phố vừa di dời dân làng vào đất liền sinh sống, nhường chỗ cho một dự án khu …