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
DRAFTS UNDER D/A COLLECTIONS; NON-DOCUMENTARY CONDITION; ISSUED RETROACTIVE; GUARANTEE VS CONTRACT Dear Mr. Old Man, Could you give me your opinions about controversy issues that I meet during processing documents? COLLECTION: We have received under a D/A collection a set of documents including drafts at 60 DAYS AFTER SIGHT. Do we calculate the maturity date from the day we receive the above documents for collection or from the day … 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
AI ĐI CỬA KHẺM THÌ ĐI! Cuối năm ngoái khi xảy ra vụ lùm xùm giữa Huế và Đà Nẵng liên quan đến Dự án World Shine Resort Complex của World Shine Hong Kong Limited Company, mình rất háo hức muốn khám phá mũi Cửa Khẻm và đã một mình đạp xe qua đèo Hải Vân rồi lần theo con đường mới mở phía bắc Hải … Read More
PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but … 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