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 …

Hôm qua ngồi cà phê viết một bài tào lao, trong đó có câu: “Trâu bò đánh nhau, ruồi muỗi chết” nên tiện thể tra luôn xem thử tiếng Anh hay tiếng Tàu có thành ngữ tương đương như tiếng Việt mình không. Hóa ra, có đó các bạn ạ. Nhưng có lẽ văn hóa mỗi nước khác nhau nên …

Sáng nay ngồi cà phê, Mr. Old Man lướt Facebook, xem mấy cái clip chuyện ngụ ngôn bằng tiếng Anh. Thấy sư tử với hổ nói chuyện qua lại, tự nhiên nghĩ: Hay là hỏi Chat thử, nếu sư tử và hổ đánh nhau trong lồng bát giác UFC thì con nào sẽ thắng? Con nào dám làm trọng tài? …

Introduction A discrepancy in an LC presentation can create some practical questions that go beyond the documents themselves—particularly when the B/L is made out to the order of the issuing bank. If the applicant refuses to waive the discrepancies, does the issuing bank have to endorse the B/L before returning the documents? And, perhaps more importantly, who is responsible for …

INTRO This is an interesting question concerning the relationship between the issuing bank, advising bank, transferring bank, and RMA. In particular, can an issuing bank authorize a bank that does not have an RMA relationship with it to act as the transferring bank when that bank is the beneficiary’s bank? The following example illustrates one possible arrangement. QUESTION Can an …

Back when I was still actively chasing the cycling challenge of conquering 100,000 meters in elevation on Son Tra Mountain, I rode my bike countless times along the winding trails beneath the Radar station on the peak of Monkey Mountain. The ultimate goal of those grueling rides was to locate a specific boulder known as Boom Boom Rock—a famous outdoor …

Thời còn sung sức đạp xe chinh phục thử thách leo Sơn Trà 100.000m độ cao, Mr. Old Man đã từng không biết bao nhiêu lần rong ruổi qua các khu vực khúc khuỷu dưới trạm Radar trên đỉnh Monkey Mountain. Bên cạnh chinh phục thách thức, mục tiêu của những chuyến đi ấy còn là tìm cho ra bằng …