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 …

A reader recently sent Mr. Old Man an interesting question about trade finance and financial statements. It sounds simple at first… but the topic can actually become quite broad if discussed in detail Here is a short and practical answer. Question Dear Mr. Old Man, This may be a genuine question, but would you kindly explain how to determine whether …

In the old days, documents were usually dispatched by the nominated bank itself. But today, some banks allow customers or overseas units to access trade finance systems, print the covering schedule, and send documents directly to the issuing bank. So what happens if the documents are lost in transit? Does UCP 600 article 35 still protect the nominated bank? An …

Sáng ngồi cà phê, lướt Facebook thấy anh bạn post lại bức chân dung do anh tự vẽ của một tài tử phim hành động nổi tiếng một thời Nhìn phát nhận ra ngay: “À… anh này đóng Out for Justice đây mà!” Hồi xưa Mr. Old Man mê phim của anh này lắm. Không phải kiểu đánh đấm bay …

Mặc dù nghỉ hưu đã lâu, không còn nhu cầu “networking nghề nghiệp” nữa, Mr. Old Man vẫn hay lượn qua LinkedIn — mạng xã hội nghề nghiệp lớn nhất thế giới — để xem thiên hạ, nhất là mấy chuyên gia quốc tế, hôm nay share gì hay ho. Thi thoảng Mr. Old Man cũng góp vui bằng vài …

INTRODUCTION In documentary credit practice, issuing banks sometimes issue discrepancy notices too quickly, only to later realize that the alleged discrepancies are not valid under UCP 600 or ISBP. But what happens if the applicant has already relied on that first refusal notice and now refuses to reimburse the issuing bank after the bank changes its mind and decides the …

Dạo này Mr. Old Man xem TikTok và coi web drama Tàu hơi nhiều nên phát hiện mình đang sống giữa một thế giới đầy mật mã. Tụi nhỏ nói chuyện kiểu: “CP này HE rồi nhưng OTP kia chắc BE. Haizz…” Mr. Old Man nghe xong tưởng: • thuật ngữ IT, • mã SWIFT, • hay ký hiệu nghiệp …