WHERE A VIRGULE (/) IS USED QUESTION Hi Mr. Old Man, I have a question that needs your comment. LC stipulates: B/L MUST SHOW GROSS/NET WEIGHT PER CONTAINER B/L presented only shows GROSS WEIGHT. The issuing bank raises the discrepancy “B/L DOES NOT SHOW NET WEIGHT PER CONTAINER” Is the discrepancy valid? Thank you! TV ————– ANSWER Hi, The discrepancy is not valid. A virgule (i.e., … Read More
NOTIFY PARTY ON BILL OF LADING QUESTION Dear Mr. Old Man, LC states as follows: – Field 50 (Applicant): AAA Company … Hong Kong – Field 46A: (Documents required) … Full set of clean on board original ocean bill of lading made out to the order of ABC Bank Ltd notify applicant, marked “freight prepaid”. … – Field 47A (Additional conditions): All documents must state notify … Read More
DISCOUNTING VS NEGOTIATION QUESTION What is the difference between discounting and negotiation? Please clarify. MK ———– ANSWER Hi, With regard to the purchase of drafts and/or documents presented under LCs, UCP 600 does not use the term “discounting” but the term “negotiation” which means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents, … Read More
WHERE BILL OF LADING PRESENTED UNDER TRANSFERRED LC INDICATES UNIT PRICE AND AMOUNT DIFFERENT FROM THOSE ON INVOICE SUBSTITUTED BY THE FIRST BENEFICIARY QUESTION We, as issuing bank, issues a transferable letter of credit available with any bank by negotiation and Bank A is nominated as transferring bank. The credit does not contain a clause like “Unit price, amount and/or second Ben’s information are prohibited to be indicated on documents except invoice and draft.” We are advised by the transferring bank that credit was transferred … Read More
FIVE BANKING DAY RULE One of the most dangerous elbow-shaped slopes of Hai Van Pass. QUESTION Dear Mr Old Man, I’d like to ask you a question relating to the 05 banking days after presentation day a bank has to determine if the presentation is complying. The issuing bank decides its a complying presentation and agrees to release the docs to applicant on 1st day while holding … Read More
CO-ACCEPTANCE of BILLs Taking wedding photo by Sword Lake, Hanoi 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 … Read More
BL SHOWING PLACE OF FINAL DESTINATION DIFFERENT FROM PORT OF DISCHARGE QUESTION Dear Mr. Old Man, I have a question: L/C calls for port to port BL stating port of loading and port of discharge. Presented BL showing required ports but also place of final destination not called for under LC. Is it a discrepancy? Any ICC opinion about this? Thank you in advance for your valuable reply. Shirki ——– ANSWER … Read More
FULL SET LESS ONE ORIGINAL BL; CLAIMING DISSCREPANCY FEES AFTER REIMBURSEMENT QUESTION Dear Mr Old Man, We would appreciate your comment to the following questions: Question 1: LC requires in F 46A: Full set less one original of bill of lading… Does it comply with the LC requirement if the beneficiary presents two original bills of lading? Question 2: LC issued by Bank I states in Field 78 that the negotiating … Read More
D/P AT XXX DAYS AFTER BL DATE QUESTION Dear Mr. Old Man, As far as I know there are only two types of collection: D/P (Documents Against Payment) and D/A (Documents Against Acceptance). However, I’ve just heard about a strange collection: D/P at xxx days after BL date. Please let me know if there is such a strange collection. If there is, what is the difference between … Read More
QUESTIONS REGARDING BPO QUESTION Kính gửi anh Old Man, Hiện nay em cũng đang nghiên cứu về sản phẩm BPO, tuy nhiên còn khá mới mẻ tại Việt Nam. Anh có thể chia sẻ với em một chút kiến thức về sản phẩm này không ạ (phương thức giao dịch, …). Em cảm ơn a nhiều ———— ANSWER Hi, Cung cấp cho bạn … Read More