Commitment Fee After LC Expiry — Still Chargeable? Intro: A reader recently asked an interesting question about fees under a letter of credit. When an LC expires, does that mean the applicant no longer has to pay commitment fees to the issuing bank? Let’s take a closer look. __________ Question: Good morning, Sir! Thank you so much for all your efforts in making trade finance information more accessible. … Read More
When the Bill of Lading indicates “Intended Port of Discharge” and “Place of Delivery” — What does ISBP 821 E8(b) say? Sometimes a Bill of Lading can make bankers frown for all the wrong reasons. We’ve seen cases where it shows an “intended port of loading” and that’s fine under UCP 600, but what about when it shows an “intended port of discharge” instead? Does that make it discrepant? Let’s see what happens when Durban plays both roles — as the … Read More
DOCUMENTS LOST IN TRANSIT Article 35 UCP 600 Does Not Apply to an L/C Available with the Issuing Bank by Payment, Deferred Payment, or Acceptance INTRODUCTION From time to time, LC practitioners raise concerns about what happens if documents are lost in transit between banks. Article 35 of UCP 600 seems to provide clear protection — but when and to whom does that … Read More
When Is an Insurance Document Really ‘Negotiable’? – Understanding ISBP 821 (K19–K21) Insurance documents under a Letter of Credit can be tricky — especially when the LC calls for a document “in negotiable form” or “issued to the order of” a bank. What exactly does “negotiable form” mean? When is an endorsement required? And what happens if the LC doesn’t specify who the insured party should be? Below is a detailed question … Read More
CAN A USANCE LC BE ISSUED AVAILABLE WITH ANY BANK? INTRO At first glance, it may sound reasonable to make a usance LC “available with any bank.” After all, the more flexibility for the beneficiary, the better—right? But in practice, things are rarely that simple. Under UCP 600, a nominated bank has no obligation to act unless it agrees to do so. That small detail makes all the difference, as … Read More
Can a Finance Company Act as a Remitting Bank? In documentary collections, banks usually handle the remittance of funds and documents — but does it have to be a bank? What if a finance company steps in to manage the process? Let’s look at how a finance company can act as a remitting bank and how payment can still flow smoothly, even without its own nostro account. Question Dear … Read More
Chiều không mưa, ghé thăm Bảo tàng Đà Nẵng Mr. Old Man ghé Bảo tàng Đà Nẵng, không ngờ lại “gặp” hai thông điệp quốc tế vang dội từ hơn nửa thế kỷ trước: “Việt Nam là lương tri của chúng ta” – tiếng Ý nghe sang mà thấm, và “Hòa bình cho Việt Nam!” – tiếng Đức nghe gọn mà ấm lòng. Nhìn hai khẩu hiệu ấy, Mr. … Read More
Tại sao các boss Việt Nam thường ngại chơi Facebook? ___ Thời buổi này, ai cũng online — từ cô bán bún tới chú bảo vệ đều có Facebook, chỉ trừ… boss. Không phải họ không biết xài đâu nhé, mà là biết quá rõ để không dại mà xài! Boss mà đăng hình họp đối tác ở resort, thể nào mai có người comment: “Ủa, đi công tác hay … Read More
When the Shipper Isn’t the Shipper — or Is It? Sometimes, a little phrase like “on behalf of” saves a lot of trouble — as long as it clearly links back to the beneficiary named in the credit. Here’s a case where the bill of lading shows the shipper acting on behalf of the beneficiary. Is that acceptable? _______ Question Dear Mr. Old Man, The LC states that the shipper … Read More
Different Signatures on a Bill of Lading and Its Rider Page – Acceptable or Discrepant? Intro A seemingly small issue, yet one that often stirs debates among LC practitioners: Can a bill of lading and its attached page — signed by different offices of the same carrier — still be accepted under the LC? Here’s what Mr. Old Man thinks. _____ QUESTION Dear Mr. Old Man, The LC calls for a bill of lading. The … Read More