CO_ACCEPTANCE OF BILLS CO_ACCEPTANCE OF BILLS QUESTION Dear Mr. Old Man, We need your expert opinion in the following case: We received one documents for collection from Bank A with the condition “90 days D/A co-accepted by bank”. Our bank sent MT499 to Bank A indicated “the documents have been co-accepted by us and we will make payment on due date”. We released … Read More
WHERE THE NOMINATED BANK DOES NOT NEGOTIATE THE DOCUMENTS QUESTION Hi Mr. Old Man, I feel confused with the following case: We as advising bank received a letter of credit available with any bank by negotiation and advised the same to the beneficiary. After shipment the beneficiary presented the documents to our bank and we forwarded the documents to the issuing bank without negotiation. I understand that in this … Read More
HOWEVER NAMED HOWERVER NAMED QUESTION Dear Mr. Old Man, PLS answer my questions: I don’t understand the word “HOWEVER NAMED” in UCP 600, particularly Art 20 (a), which says “ A bill of lading, however named…..”. What does it mean? If on the face of the document, we determine and treat it as a bill of lading except the title ” Charter … Read More
DOCUMENT CHECKING FEE QUESTION Good day, Mr. Old Man. We have an LC opened in our favour that allows partial shipments. Every time we present a drawing the confirming bank will find a discrepancy or two even though our bank (the advising Bank) would have assured us there were no discrepancies. The applicant ( buyer) always accepts the discrepancies (since sometimes the goods … Read More
DEFERRED PAYMENT UNDERTAKING QUESTION I have come accross this statement. “Under UCP600, the DPU remains undefined and still a bit of a mystery as to whether/how its incurrence may/must be evidenced.” Could you please comment further? Best regards, G. —- ANSWER You may have learnt about Banco Santander case in connection with discounting one’s own deferred payment undertaking (DPU). The main details of … Read More
DOES SHIPMENT FROM ANY CHINESE PORT INCLUDE TAIPEI PORT? QUESTION Dear Mr. Old Man, I’ve heard that if L/C stipulates the port of loading as “Any port in China” or “Any Chinese port”, a bill of lading indicating the port of loading as Hong Kong is acceptable. 1) Let me know if what I’ve heard is true. 2) If it is true, what if the bill of lading indicates … Read More
WHICH ARTICLE OF UCP 600 IS APPLICABLE FOR EXAMINATION OF A TRANSPORT DOCUMENT QUESTION Hi Mr Old Man, Please help me with the following case: Field 44E : VietNam 44F : Belgium 44B : France 45A : CFR Belgium 46A : Bill Of Lading, …notify: applicant ( france) Cert of Origin and Health Cert must state final destination ( france ) B/l will state as follows Port of Loading : Vietnam Port of … Read More
QUESTIONS REGARDING LC WITH T/T REIMBURSEMENT ALLOWED QUESTION Dear Mr. Nguyen, Many thanks for taking the time to reply while busy working . I apologize about unclear query on face book. Please allow me to explain more clearly: In fact we are the applicants our bank amended the L/C to allow T.T. Reimbursement without seeking our approval to authorize such amendment. The amendment was carried by issuing … Read More
EXPIRED LC QUESTION Hi Mr. Old Man, We have the following case relating to expired L/C. Our bank sent the issuing bank the documents under the L/C available with the issuing bank by acceptance. As the L/C expired, the issuing bank sent us a message informing that it treated the documents as a collection. Two weeks later, the issuing bank sent us … Read More
BILL OF LADING ENDORSED BY AGENT OF THE SHIPPER QUESTION Dear Mr. Old Man, Please help me with the following question: B/L shows as follows: Shipper: Company 1 A/C Company 2 Consignee: To Order Endorsement made by Company 2 What does A/C mean? Does Company 2 have right to endorse the bill of lading? I’m looking forward to receiving your reply soon. Thank you very much. Best Regards, QN … Read More