Mr Old Man PARTIAL SHIPMENTS UNDER SUB-ARTICLE 31 (B) QUESTION Dear Mr. Old Man, LC does not allow partial shipments. Documents were presented to the issuing bank in two separate covering schedules. The first set reached the issuing bank’s counter on 5 O… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
D/P AT XXX DAYS AFTER BL DATE 22 Jan 2014 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 …
QUESTIONS REGARDING BPO 18 Jan 2014 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 …
NEGOTIATION WITH OR WITHOUT RECOURSE 30 Dec 2013 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 …
CHANGING PAYMENT TERMS OF THE LC 18 Nov 2013 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, …
AMOUNT OF COVER 13 Nov 2013 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 …
LC WITH SPECIAL PAYMENT CONDITION 7 Nov 2013 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 …
AUTHENTICATION OF CORRECTIONS ON BILL OF LADING AND INVOICE 19 Oct 2013 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 …
LC CONFIRMED BY THE FIRST ADVISING BANK 15 Sep 2013 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 …
CAD 6 Aug 2013 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 …
HOW TO DETERMINE THE PRESENTATION PERIOD WHEN MULTIPLE SETS OF BILLS OF LADING ARE PRESENTED 31 Jul 2013
WHERE DOCUMENTS UNDER D/P ARE NOT PAID 25 Jun 2013 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 …
BILL OF LADING DATED PRIOR TO LC ISSUANCE DATE 15 Jun 2013 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 …
With or Without Aval? A Small Question That Changes the Risk in Documentary Collections 18 Apr 2026 Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains strictly mechanical. Then, occasionally, a small question appears: “With or without avalization?” It sounds like a minor procedural choice. In reality, it quietly shifts the nature of the transaction—from relying solely on the …
Prepayment, Fraud Risk and Article 12 — Where Does the Risk Lie? 18 Apr 2026 Discussions around the possible revision of UCP 600 often bring out interesting practical concerns. One of them, raised recently by a colleague, goes straight to the heart of risk allocation in documentary credits: If a nominated bank prepays or discounts under a credit, and fraud is discovered later, who ultimately bears the risk? A fair question — and not an …
Partial Acceptance of an Amendment: A Quiet Trap in UCP 600 18 Apr 2026 There is a particular kind of misunderstanding in documentary credit practice that looks harmless at first glance—almost logical, even—but can quietly lead both bankers and beneficiaries into trouble. One of those is the idea of partial acceptance of an amendment. At first, it sounds reasonable: if an amendment contains several changes, why can’t a beneficiary accept some and ignore the …
Deleting “Acceptance” from UCP 600? A Practical Question 18 Apr 2026 As discussions continue around whether UCP 600 should be revised, some suggestions focus not on rewriting the rules entirely, but on simplifying specific provisions. One such suggestion is to remove availability by acceptance under Article 6(b), on the basis that drafts are no longer necessary in modern practice. At first glance, this seems reasonable. But as often in trade finance, …
ICC, the Middle East tensions… and the quiet reminder that “the rules are still the rules” 18 Apr 2026 Over the past few days, many of us in trade finance have probably come across the latest ICC note on the application of its rules in light of the ongoing Middle East tensions. Reading it, Mr. Old Man had a familiar feeling. Nothing dramatic. No sweeping changes. And yet, very much worth a careful read. Because in times when the …
ICC, xung đột Trung Đông… và câu chuyện “luật vẫn là luật” 17 Apr 2026 Mấy ngày gần đây, anh em trong nghề trade finance chắc cũng đã đọc qua tài liệu mới của ICC liên quan đến việc áp dụng các quy tắc tài trợ thương mại trong bối cảnh xung đột Trung Đông. Đọc xong, Mr. Old Man có cảm giác khá quen thuộc – không có gì “giật gân”, không có thay …
With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains strictly mechanical. Then, occasionally, a small question appears: “With or without avalization?” It sounds like a minor procedural choice. In reality, it quietly shifts the nature of the transaction—from relying solely on the … Read More
Prepayment, Fraud Risk and Article 12 — Where Does the Risk Lie? Discussions around the possible revision of UCP 600 often bring out interesting practical concerns. One of them, raised recently by a colleague, goes straight to the heart of risk allocation in documentary credits: If a nominated bank prepays or discounts under a credit, and fraud is discovered later, who ultimately bears the risk? A fair question — and not an … Read More
Partial Acceptance of an Amendment: A Quiet Trap in UCP 600 There is a particular kind of misunderstanding in documentary credit practice that looks harmless at first glance—almost logical, even—but can quietly lead both bankers and beneficiaries into trouble. One of those is the idea of partial acceptance of an amendment. At first, it sounds reasonable: if an amendment contains several changes, why can’t a beneficiary accept some and ignore the … Read More
Deleting “Acceptance” from UCP 600? A Practical Question As discussions continue around whether UCP 600 should be revised, some suggestions focus not on rewriting the rules entirely, but on simplifying specific provisions. One such suggestion is to remove availability by acceptance under Article 6(b), on the basis that drafts are no longer necessary in modern practice. At first glance, this seems reasonable. But as often in trade finance, … Read More
ICC, the Middle East tensions… and the quiet reminder that “the rules are still the rules” Over the past few days, many of us in trade finance have probably come across the latest ICC note on the application of its rules in light of the ongoing Middle East tensions. Reading it, Mr. Old Man had a familiar feeling. Nothing dramatic. No sweeping changes. And yet, very much worth a careful read. Because in times when the … Read More
ICC, xung đột Trung Đông… và câu chuyện “luật vẫn là luật” Mấy ngày gần đây, anh em trong nghề trade finance chắc cũng đã đọc qua tài liệu mới của ICC liên quan đến việc áp dụng các quy tắc tài trợ thương mại trong bối cảnh xung đột Trung Đông. Đọc xong, Mr. Old Man có cảm giác khá quen thuộc – không có gì “giật gân”, không có thay … Read More
Khi trí nhớ bắt đầu “trật đường rày” Già thì yếu, trí nhớ suy giảm, nhớ trước quên sau… thậm chí có hôm “mới nói đó, quay qua là quên mình vừa nói gì” – chuyện đó cũng chẳng có gì đáng ngạc nhiên. Nhưng có những trường hợp “khó tin” hơn. Sếp của Mr. Old Man về hưu hơn 30 năm, tức nay đã ngoài 90, mà … Read More
Sẽ không có chuyện sửa đổi UCP 600… Người làm nghề tín dụng chứng từ vốn đã quen với một “chu kỳ ngầm”: cứ khoảng 10 năm, lại có một phiên bản UCP mới ra đời. Từ những ngày đầu cho đến UCP 600, các lần sửa đổi thường diễn ra theo một nhịp khá đều. Nhưng lần này thì khác. Đã gần 20 năm trôi qua — … Read More
No Revision of UCP 600… At Least Not for Now For those working in documentary credits, there has always been an unspoken rhythm: roughly every decade, a new version of UCP comes along. From its early days to UCP 600, revisions have followed a fairly regular cycle. But this time feels different. Nearly 20 years have passed — and UCP 600 remains untouched. No draft revision. No clear signal of … Read More
Documentary Credits: Safe… but not as certain as we think This article is inspired by “Documentary credits and the illusion of certainty – resolving the real problem” by David Meynell. □ We tend to think of letters of credit as a “safe” method of payment. As long as documents comply with the terms of the credit and UCP 600, payment should follow. Banks examine documents, not goods. They do not … Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains strictly mechanical. Then, occasionally, a small question appears: “With or without avalization?” It sounds like a minor procedural choice. In reality, it quietly shifts the nature of the transaction—from relying solely on the … Read More
Prepayment, Fraud Risk and Article 12 — Where Does the Risk Lie? Discussions around the possible revision of UCP 600 often bring out interesting practical concerns. One of them, raised recently by a colleague, goes straight to the heart of risk allocation in documentary credits: If a nominated bank prepays or discounts under a credit, and fraud is discovered later, who ultimately bears the risk? A fair question — and not an … Read More
Partial Acceptance of an Amendment: A Quiet Trap in UCP 600 There is a particular kind of misunderstanding in documentary credit practice that looks harmless at first glance—almost logical, even—but can quietly lead both bankers and beneficiaries into trouble. One of those is the idea of partial acceptance of an amendment. At first, it sounds reasonable: if an amendment contains several changes, why can’t a beneficiary accept some and ignore the … Read More
Deleting “Acceptance” from UCP 600? A Practical Question As discussions continue around whether UCP 600 should be revised, some suggestions focus not on rewriting the rules entirely, but on simplifying specific provisions. One such suggestion is to remove availability by acceptance under Article 6(b), on the basis that drafts are no longer necessary in modern practice. At first glance, this seems reasonable. But as often in trade finance, … Read More
ICC, the Middle East tensions… and the quiet reminder that “the rules are still the rules” Over the past few days, many of us in trade finance have probably come across the latest ICC note on the application of its rules in light of the ongoing Middle East tensions. Reading it, Mr. Old Man had a familiar feeling. Nothing dramatic. No sweeping changes. And yet, very much worth a careful read. Because in times when the … Read More
ICC, xung đột Trung Đông… và câu chuyện “luật vẫn là luật” Mấy ngày gần đây, anh em trong nghề trade finance chắc cũng đã đọc qua tài liệu mới của ICC liên quan đến việc áp dụng các quy tắc tài trợ thương mại trong bối cảnh xung đột Trung Đông. Đọc xong, Mr. Old Man có cảm giác khá quen thuộc – không có gì “giật gân”, không có thay … Read More
Khi trí nhớ bắt đầu “trật đường rày” Già thì yếu, trí nhớ suy giảm, nhớ trước quên sau… thậm chí có hôm “mới nói đó, quay qua là quên mình vừa nói gì” – chuyện đó cũng chẳng có gì đáng ngạc nhiên. Nhưng có những trường hợp “khó tin” hơn. Sếp của Mr. Old Man về hưu hơn 30 năm, tức nay đã ngoài 90, mà … Read More
Sẽ không có chuyện sửa đổi UCP 600… Người làm nghề tín dụng chứng từ vốn đã quen với một “chu kỳ ngầm”: cứ khoảng 10 năm, lại có một phiên bản UCP mới ra đời. Từ những ngày đầu cho đến UCP 600, các lần sửa đổi thường diễn ra theo một nhịp khá đều. Nhưng lần này thì khác. Đã gần 20 năm trôi qua — … Read More
No Revision of UCP 600… At Least Not for Now For those working in documentary credits, there has always been an unspoken rhythm: roughly every decade, a new version of UCP comes along. From its early days to UCP 600, revisions have followed a fairly regular cycle. But this time feels different. Nearly 20 years have passed — and UCP 600 remains untouched. No draft revision. No clear signal of … Read More
Documentary Credits: Safe… but not as certain as we think This article is inspired by “Documentary credits and the illusion of certainty – resolving the real problem” by David Meynell. □ We tend to think of letters of credit as a “safe” method of payment. As long as documents comply with the terms of the credit and UCP 600, payment should follow. Banks examine documents, not goods. They do not … Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
With or Without Aval? A Small Question That Changes the Risk in Documentary Collections 18 Apr 2026 Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains strictly mechanical. Then, occasionally, a small question appears: “With or without avalization?” It sounds like a minor procedural choice. In reality, it quietly shifts the nature of the transaction—from relying solely on the …
Prepayment, Fraud Risk and Article 12 — Where Does the Risk Lie? 18 Apr 2026 Discussions around the possible revision of UCP 600 often bring out interesting practical concerns. One of them, raised recently by a colleague, goes straight to the heart of risk allocation in documentary credits: If a nominated bank prepays or discounts under a credit, and fraud is discovered later, who ultimately bears the risk? A fair question — and not an …
Partial Acceptance of an Amendment: A Quiet Trap in UCP 600 18 Apr 2026 There is a particular kind of misunderstanding in documentary credit practice that looks harmless at first glance—almost logical, even—but can quietly lead both bankers and beneficiaries into trouble. One of those is the idea of partial acceptance of an amendment. At first, it sounds reasonable: if an amendment contains several changes, why can’t a beneficiary accept some and ignore the …
Deleting “Acceptance” from UCP 600? A Practical Question 18 Apr 2026 As discussions continue around whether UCP 600 should be revised, some suggestions focus not on rewriting the rules entirely, but on simplifying specific provisions. One such suggestion is to remove availability by acceptance under Article 6(b), on the basis that drafts are no longer necessary in modern practice. At first glance, this seems reasonable. But as often in trade finance, …
ICC, the Middle East tensions… and the quiet reminder that “the rules are still the rules” 18 Apr 2026 Over the past few days, many of us in trade finance have probably come across the latest ICC note on the application of its rules in light of the ongoing Middle East tensions. Reading it, Mr. Old Man had a familiar feeling. Nothing dramatic. No sweeping changes. And yet, very much worth a careful read. Because in times when the …
ICC, xung đột Trung Đông… và câu chuyện “luật vẫn là luật” 17 Apr 2026 Mấy ngày gần đây, anh em trong nghề trade finance chắc cũng đã đọc qua tài liệu mới của ICC liên quan đến việc áp dụng các quy tắc tài trợ thương mại trong bối cảnh xung đột Trung Đông. Đọc xong, Mr. Old Man có cảm giác khá quen thuộc – không có gì “giật gân”, không có thay …
Khi trí nhớ bắt đầu “trật đường rày” 17 Apr 2026 Già thì yếu, trí nhớ suy giảm, nhớ trước quên sau… thậm chí có hôm “mới nói đó, quay qua là quên mình vừa nói gì” – chuyện đó cũng chẳng có gì đáng ngạc nhiên. Nhưng có những trường hợp “khó tin” hơn. Sếp của Mr. Old Man về hưu hơn 30 năm, tức nay đã ngoài 90, mà …
Sẽ không có chuyện sửa đổi UCP 600… 16 Apr 2026 Người làm nghề tín dụng chứng từ vốn đã quen với một “chu kỳ ngầm”: cứ khoảng 10 năm, lại có một phiên bản UCP mới ra đời. Từ những ngày đầu cho đến UCP 600, các lần sửa đổi thường diễn ra theo một nhịp khá đều. Nhưng lần này thì khác. Đã gần 20 năm trôi qua — …
No Revision of UCP 600… At Least Not for Now 16 Apr 2026 For those working in documentary credits, there has always been an unspoken rhythm: roughly every decade, a new version of UCP comes along. From its early days to UCP 600, revisions have followed a fairly regular cycle. But this time feels different. Nearly 20 years have passed — and UCP 600 remains untouched. No draft revision. No clear signal of …
Documentary Credits: Safe… but not as certain as we think 14 Apr 2026 This article is inspired by “Documentary credits and the illusion of certainty – resolving the real problem” by David Meynell. □ We tend to think of letters of credit as a “safe” method of payment. As long as documents comply with the terms of the credit and UCP 600, payment should follow. Banks examine documents, not goods. They do not …
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More
Mr Old Man With or Without Aval? A Small Question That Changes the Risk in Documentary Collections Introduction In documentary collections under URC 522, things often run on familiar rails—documents sent, acceptance obtained, maturity awaited. Most of the time, the collecting bank’s role remains st… Read More