LC AVAILABLE BY PAYMENT QUERY Hi Mr Old Man, Can I ask you some questions? Issuing bank: ABC BANK GERMANY 41A: Available with by: DEF BANK VIETNAM by payment 47A: Please dispatch documents to us (ABC BANK GERMANY) 53A: Reimbursing Bank: GHK BANK NEWYORK 78A: In reimbursement, please draw on our USD account with GHK BANK NEWYORK …………….. Where should Negotiating Bank send documents … Read More
WHERE CERTIFICATE OF QUALITY STATES THE GOODS ARE OF POOR QUALITY QUERY LC requires a certificate of vessel’s tank cleanliness. Beneficiary presents a document with exactly the same title, showing content as follow: Quote Method of Cleaning : No tanks cleaning was carried out. Unquote Is this document complying? Noting sub-article 14(f), the question is whether its content appears to fulfill the function of the required document. Can I have your … Read More
THE INDEPENDENCE OF THE ISSUING BANK’S UNDERTAKINGS QUESTION Dear Mr. Old Man, Please help me solve the following issue: With regard to sub article 7c in UCP 600, “An issuing bank’s undertaking to reimburse a nominated bank is independent of the issuing bank’s undertaking to the beneficiary”, the statement does not clarify which “independent” is. Question 7.7 in FAQ under UCP 600 explained this statement as suggested … Read More
HOW TO GIVE NOTICE OF REFUSAL TO THE BENEFICIARY WHO HAS PRESENTED THE DOCUMENTS DIRECTLY TO THE ISSUING BANK? QUESTION Dear Mr. Old Man, I understand that sub-article 6 (a) UCP 600 allows the beneficiary to present the documents directly to the issuing bank. However, I want to know how the issuing bank give the notice of refusal to the beneficiary in case the presented documents contain discrepancies. Thank you for your advice Best regards, L.L —– ANSWER Hi, … Read More
EARLY PRESENTATION QUESTION Dear Mr Old Man, I am Dang from Vietnam Prosperity bank. I know that you usually give valuable oppion for difficult cases from bank in Vietnam. Today, our bank faces with a difficult case and I would like to seek your valuable idea: L/C required: Latest date of shipment: 10 Aug 20… Period for presentation: After 21days from the … Read More
WHAT DOES D/A AT 30 DAYS SIGHT MEAN? QUESTION Hi Mr. Old Man, We’ve received D/A documents at 30 days sight. How to calculate the due date in this case? 30 days from the document arrival date or 30 days from the drawee’s acceptance date? Our practice is that when the D/A documents arrive at our bank, we send the drawee the notice of document arrival at once … Read More
LATE DELIVERY PENALTY CLAUSE QUESTION Dear Mr. Old Man, We need your comment on the following case: A credit issued by our bank states in Field 47A as follows: “Late shipment is acceptable but subject to a penalty of 2.5% for every 7 days (odd days less than seven days is considered as seven days). The total amount of penalty shall not exceed 10% … Read More
WHETHER THE BENEFICIARY CAN NEGOTIATE THE DOCUMENTS WITH THE 1ST ADVISING BANK QUESTION Hi Sir, Can 1st advising bank contact the beneficiary and negotiate documents directly even there is a 2nd advising bank indicated in the LC? Regards, dotcom ———– ANSWER Hi, Where the L/C is available with any bank by negotiation, the beneficiary may present the documents to any bank including the first advising bank for negotiation. Where the L/C … Read More
ISSUING BANK’S LIABILITY UNDER THE SHIPPING GUARANTEE QUESTION Hi Mr. Old Man, Could you please give your comments on the following: 1) The issuing bank has issued a shipping guarantee to enable the applicant to take delivery of the goods without presentation of original bills of lading. If the original bills of lading made to the order of the issuing bank are lost in transit, what are … Read More
CONSIGNEE IN SURRENDERED BILL OF LADING QUESTION Dear Mr. Old Man, We are arguing about consignee in Surrendered Bill of Lading and need your expert opinion. The case is as follows: L/C issued on 15 August, 2017 required Bill of Lading made out to the order of issuing bank. Amendment issued on 20 August, 2017 states “Surrendered Bill of Lading acceptable” The beneficiary presented Surrendered Bill … Read More