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 …

Standby practitioners who move from the world of commercial documentary credits into standby credits governed by ISP98 often encounter an interesting question: Does a “confirmer” under ISP98 operate the same way as a “confirming bank” under UCP 600? At first glance, the concepts appear almost identical. However, Rule 1.11(c)(i) of ISP98 sometimes creates confusion because it states that a confirmer …

In documentary credit practice, a few words in an LC can create major compliance issues — especially in triangular trade transactions where the beneficiary, supplier, and shipment origin are all located in different countries. One such phrase is: “Certificate of Origin issued by the Chamber of Commerce of the country of exportation.” At first glance, this may sound straightforward. But …

Sẽ có nhiều người trả lời ngay: “Dĩ nhiên là đàn ông!” Ừ thì về sức vóc và thể lực, đàn ông thường mạnh hơn phụ nữ thật. Nhưng những câu chuyện thực tế mà Mr. Old Man sắp kể dưới đây lại cho thấy: phụ nữ không hề yếu chút nào… thậm chí nhiều khi còn “lì đòn” hơn …

Every Ironman athlete, whether crossing the finish line first as a champion or last after a long struggle, experiences a special moment of happiness: the feeling of overcoming oneself to complete a challenge that demands endurance, mental strength, and the determination to never give up. But at Ironman 70.3 Da Nang this time, there was a moment even more special …

Mỗi vận động viên Ironman, dù về đích đầu tiên để trở thành nhà vô địch hay về đích cuối cùng, đều có một khoảnh khắc hạnh phúc riêng: đó là giây phút vượt qua chính mình để hoàn thành thử thách khắc nghiệt đòi hỏi sức bền thể lực, ý chí mạnh mẽ và tinh thần không bỏ cuộc. …

In international trade, many exporters and importers casually say: “CIP requires All Risks insurance.” Technically, that is not entirely wrong. But from an insurance and trade finance perspective, “All Risks” and ICC A are not perfectly identical terms. This distinction becomes important when a cargo claim is rejected because of one of the many exclusions hidden in the policy wording. …