Quoted from DCPro Discussion Forum (15 – 24 Feb, 2016) QUESTION I would like to seek for your opinion in the following case: Extract from L/C: 41D: AVAILABLE WITH…BY… ANY BANK BY NEGOTIATION 42C: DRAFT AT… 60 DAY AFTER BILL OF LADING FOR 100PCT OF FULL INVOICE VALUE 42A: DRAWEE ISSUING BANK (BIDV) BIDV received the complying document from the …

Quoted from DCPro Discussion Forum (23 – 25 Feb, 2016) My Fuji QUESTION L/C allows shipment from USA to India. In the B/L, both the place of receipt and port of loading indicate “New Jersey” and port of discharge and place of destination as name of Indian port. B/L only states a vessel name of xxxx. No indication that any …

Ravi Mehta was the late Founder and Editor – in – Chief of LCVIEWS. He was an admirable expert in trade finance. One of my articles was written with reference to his famous article “Export Letters of Credit: Eight Steps to Error-Free Compliance”. In February 2007 I sent a question via LCVIEWS to Ravi Mehta for his comment but I …

QUESTION LC terms and conditions: F50 (Applicant): ABCD INVESTMENT CO-OPERATION CO., LTD AN LAC HAMLET, VAN LAM DIST., HUNG YEN PROVINCE F46A (Documents required) –          PACKING LIST IN 03 ORIGINALS. –          FULL SET 3/3 B/L …AND NOTIFY APPLICANT. F47A (Additional condition): SPELLING MISTAKES AND TYPO ERRORS ON DOCS ARE ACCEPTABLE EXCEPT MISTAKES OR ERRORS ON DESCRIPTION OF GOODS, INVOICE AMOUNT AND UNIT PRICE. …

Hoi An Ancient City, Vietnam QUESTION Dear Mr. Old Man, I really need your kind help in the following matters. Documents presented for collection do not contain bills of exchange or other financial documents. The collection schedule (not mention any tenor) states as follows: +  Maturity date: 30 OCT 2016 +  Delivery against acceptance. Must documents presented for collection contain …

QUESTION Dear Mr. Old Man, What happens when second beneficiary submits complying document but first beneficiary fails to submit complying documents and the applicant refuses to accept the documents and so also goods and does not release payment? Does it mean even the second beneficiary loses right to receive payment under LC? Regards, Subhash ———- ANSWER Hi, Good question! It …

QUESTION Hi Mr. Old Man, If a LC is issued available with a nominated bank by negotiation and draft drawn on issuing bank, can the nominated bank just negotiate (purchase) the complying documents without negotiating the draft so as to qualify for negotiation with recourse? I understand once the nominated negotiated the draft, then it is bound to negotiate without …

(Quoted from DC-PRO Discussion Forum 21-28 Jan, 2016) The discussion focuses on UCP 600 sub-article 14 (k), which says “The shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit”. Antoine (Lebanon) The shipper on any document presented need not be the beneficiary of the credit according to art 14 k. But …

QUESTION Hi Mr. Old Man: Thanks for your reply. Can an issuing bank actually issue a LC available with nominated bank by acceptance with draft drawn on reimbursing/confirming/issuing bank/other named banks? I am asking this question because I understand the term “acceptance” as to mean the issuing bank authorizes the nominated bank to accept draft. If a draft is drawn …

QUESTION Dear Mr. Old Man, I am a frequent follower of your blog whose posts are very helpful for my work as a trade finance specialist. I have a case regarding LC number and date in transport documents as follows: I see that LC would require all documents including transport documents to indicate LC number and date. However, sometimes shipment …