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 …

Intro A question has been raised regarding the interaction between ISP98 Rules 9.04 and 3.05(b) where a standby specifies a presentation time earlier than the bank’s normal close of business. The key issue is whether a presentation after the stipulated time, but before close of business, can be treated as having been made on the next business day. Question Hello …

Từ ngày thành phố cắm cái biển báo “KHU VỰC BIÊN GIỞI” ở gần ngã tư Ông Ích Khiêm – Trần Cao Vân, lần nào đi ngang qua trong đầu Mr. Old Man tự nhiên thắc mắc: – Biển thì còn cách xa hơn cây số, cắm biển báo đây ở đây làm chi hè!? Trong hàng trăm ngàn lượt …

Là say thiệt, kiểu say sóng chớ không phải là mê cà phê. Chụp tấm ảnh ly cà phê sáng nay, Mr. Old Man lại nhớ một anh bạn xe đạp, vốn là chủ một quán cơm gà khá nổi tiếng ở Đà Nẵng. Hôm đó, Mr. Old Man mời những người bạn từng cùng mình phượt cung đường Giếng …

INTRODUCTION At first sight, there seems to be no reason why a usance LC cannot be made available with any bank by acceptance or by deferred payment. UCP 600 does not prohibit such a structure. But there is an important practical question: will any bank actually be willing to act on such a nomination? This question becomes even more interesting …

Thời buổi này, từ cô bán bún, chú xe ôm đến anh bảo vệ đều có Facebook. Người người Facebook, nhà nhà Facebook. Thế nhưng, có một tầng lớp khá đặc biệt mà sự hiện diện trên Facebook thường rất khiêm tốn: các boss! Không phải các sếp không biết Facebook đâu nhé. Có khi còn rành hơn khối người …

Introduction In documentary credit transactions, an insurance document may sometimes contain several parties whose respective roles are not immediately clear. The insurance broker, the named assured, the beneficiary and the underwriters may all appear in the same document. Does the issuing bank need to investigate who is actually behind the insurance arrangement? Or should it simply examine the document as …