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 …

Nearly five years into retirement, I thought I had finally hung up my sword. Turns out, life wasn’t quite ready to let me go. These days, I still find myself poking around my inbox every morning, replying to the usual questions about LC, SBLC, UCP, ISBP… Old habits die hard. This morning, a friend working at the trade finance center …

Về hưu gần 5 năm rồi, Mr. Old Man cứ tưởng mình đã được “gác kiếm”. Ai dè đời chưa cho nghỉ hẳn: ngày nào cũng còn lọ mọ check mail, trả lời mấy câu hỏi quen thuộc về LC, SBLC, UCP, ISBP… Sáng nay, một ông bạn làm ở trung tâm tài trợ thương mại của ngân hàng lớn …

Intro In LC practice, dates on documents often matter more than the facts behind them. One of the most common traps is assuming that a document must reflect the “real” event date. In reality, banks can only judge what appears on the face of the document, not what happened in the warehouse or at the port. This short Q&A looks …

A Swift sent before expiry does not mean you’ve made a valid claim. In standby business, “documents will follow” can be the most expensive sentence of the year… A banker sent me a case that looks simple — until you read it carefully. And as always in standby LCs, the devil is hiding in one small word: “and”. The Case …

Nghe thì đơn giản, nhưng câu trả lời lại không hề đơn giản chút nào: còn tuỳ. Nói Đà Nẵng thích hợp hơn Sài Gòn để sống khi về hưu là… không sai, mà là đúng quá luôn. Nhưng hỏi “nên chọn ở đâu?” thì rốt cuộc, mỗi người lại có một chữ tuỳ của riêng mình. Có lẽ trong …

Gặp anh bạn cũ ở quán cà phê, Mr. Old Man chào: “Lâu quá không gặp. Dạo rày anh thế nào?” Anh đưa tay ra, nắm chặt tay Mr. Old Man, bóp mạnh như muốn thử coi còn “gân” không, rồi nheo mắt cười: “Già rồi… như chiếc xe máy cũ!” “Như chiếc Honda chứ?” – Mr. Old Man đùa. …