CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER? QUESTION Dear Mr. Old Man, We would appreciate your guidance on the following matter: The L/C requires documents to be presented within 15 days after the Bill of Lading date, but the last permitted date for presentation falls on a Sunday. The negotiating bank’s cover letter, which certifies compliance with the L/C terms, is dated on the following Monday. Would … Read More
RETURN OF DOCUMENTS (rev) QUESTION Dear Mr. Old Man, We seek your advice regarding a case involving document discrepancies. As the issuing bank, we have received a set of documents in which all originals of the insurance certificates are not endorsed in blank as required. The applicant has informed us that the beneficiary has agreed to replace these discrepant insurance certificates and has requested … Read More
TRẢI NGHIỆM XE BUS ĐÀ NẴNG-HỘI AN & TIẾNG MỸ BỒI Lần đầu tiên, Mr. Old Man đi xe bus từ Đà Nẵng đến Hội An và ngược lại, mang theo chiếc xe đạp gấp 3 Sixty. Đó một trải nghiệm thú vị và đáng nhớ: Mr. Old Man đạp xe ra trạm xe bus gần nhà và chờ ở đó chừng 20 phút là lên xe bus, suốt hành trình … Read More
UNDERSTANDING SERVICES LETTER OF CREDIT (LC) QUESTION Dear Sir, Could you help me understand the concept of a Services Letter of Credit? I would also appreciate it if you could provide a draft of a Services LC. Looking forward to your assistance. Best regards, Jawad Askari Bank Pakistan —– ANSWER Hi Jawad, Although a Services Letter of Credit is not a distinct type of credit under … Read More
CAN A BANK ISSUE AN LC FOR AN AMOUNT LESS THAN THE PROFORMA INVOICE? QUESTION Dear Sir, This is Jawad from Askari Bank, Pakistan. I would like to confirm whether a bank can issue a Letter of Credit (LC) for an amount lower than the proforma invoice amount. For example, if the proforma invoice amount is USD 100, can the applicant request an LC for only USD 45? Additionally, if the applicant later requests … Read More
ĂN THEO BILL GATES KHÔNG DỄ Một năm trước, nhân dịp Bill Gates cùng bạn gái Paula Hurd nghỉ dưỡng ở Đà Nẵng, Mr. Old Man đã viết bài “Ăn theo Bill Gates.” Thời điểm đó, truyền thông Việt Nam rầm rộ đưa tin rằng chuyến đi của vị tỷ phú này sẽ truyền cảm hứng du lịch cho nhiều người và góp phần nâng cao … Read More
A DOCUMENT COVERING MORE THAN ONE FUNCTION MAY BE PRESENTED AS SEPARATE DOCUMENTS QUESTION Dear Mr. Old Man, Please help me with this case: The L/C requires the following document: “Certificate of Antibiotic and Chemical certified by NAFIQAD” We presented two separate documents: Certificate of Antibiotic Certificate of Chemical However, the bank refused the documents, stating that they should have been presented as a single document instead of two separate ones. Please provide … Read More
INVOICE SHOWING FREE OF CHARGE GOODS AND… INVOICE SHOWING FREE OF CHARGE GOODS AND… QUESTION Dear Mr. Old Man, Could you please provide your opinions on the following questions? QUESTION 1 The L/C requires: – Commodity: Pharmaceutical products – Description: Details of quantity and unit price as per Contract No. 123 – Total amount: USD 100,000.00 (+/-10%) The invoice presented shows: – Commodity: Pharmaceutical products – … Read More
BIIL OF LADING STATES ONLY ONE OF THE ORIGINALS IS SIGNED QUESTION Hi, The bill of lading states that only one of the originals is signed (see attached). Is the discrepancy valid? Best regards, B. Attached: —– ANSWER Hi, I find that the statement itself seems to be conflicting. Unsigned bills of lading are not considered originals. Therefore, if the LC requires 3/3 original bills of lading, presenting only one signed … Read More
WHY INSURANCE DOCUMENT MUST BE ENDORSED IN BLANK QUESTION Dear Sir I read a lot of your information on your website and learnt a lot through it. I am Arihant Sethia from India working in company called Swastik Interchem pvt ltd and recently we had exported some material to Nepal. In the letter of credit in section, 46A-subsection 6 we were asked to issue negotiable insurance or certificate … Read More