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 …

Ngồi cà phê sáng, lướt LinkedIn, Mr. Old Man tình cờ gặp một bài viết nói về những lúc nên im lặng bằng mọi giá. Nghe qua tưởng chuyện ai cũng biết, mà đọc kỹ lại thấy… hơi nhột: Hãy im lặng khi bạn chưa biết hết câu chuyện Hãy im lặng khi cảm xúc đang dâng cao Hãy im …

A familiar situation in documentary credits: a few kilograms short, a few dollars less—and suddenly, Article 30(b) becomes the center of discussion. Does tolerance quietly apply, or does the LC still demand strict compliance? QUESTION Dear Mr. Old Man, Hope you are doing well. Request you to clarify below queries: Case Details: 1 LC allows 5/5 tolerance in LC Value. …

Introduction Most documentary collections behave themselves. Roles are clear, risks are understood, and the collecting bank stays where it belongs—in the middle, passing documents, not carrying obligations. But occasionally, a small detail slips through. A draft is drawn on the wrong party. Nothing looks dramatic, yet the legal position changes completely. And just like that, the collecting bank may find …

Intro In back-to-back LC transactions, questions about Incoterms often come not from the rules—but from the bank’s sense of risk. This case is a good example: what is legally allowed, and what is operationally wise, are not always the same thing. Question Hello Sir, We are doing back-to-back LC and our shipment is under charter party. Import is on FOB …

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“This piece was meant to go live yesterday, but Mr. Old Man held it back for a day — just to see whether the sidewalks would look any different today.”———————— A foreign friend living in Da Nang left a rather interesting comment under Mr. Old Man’s earlier post about sidewalks. You can read that post here: https://mroldman.net/ban-mot-chut-ve-chuyen-via-he-o-da-nang/ He said that …