WHAT IS THE IMPACT OF EXCLUSION OF UCP 600 SUB-ARTICLE 12b? QUESTION Dear Mr. Old Man, I hope my email finds you doing well I would ask you if the issuing bank wish to exclude article 12 b by credit what is the impact and scenario in this case. Thanks for your reply in advance Regards Firas —- ANSWER Hi, UCP 600 Sub-article 12(b) states that when an issuing bank nominates … Read More
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS? QUESTION Dear Mr. Old Man, I hope you’re doing well. Could you please help clarify the following questions regarding the LC collection procedure between the beneficiary and the presenting bank? Is the beneficiary required to complete any authorization process with the presenting bank when instructing them to forward documents to the issuing bank for payment or to the nominated bank … Read More
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
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, A Services Letter of Credit (LC) is issued to guarantee payment for services rendered … 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
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
MR. OLD MAN FIRST CHAT WITH CHAT GPT MR. OLD MAN LẦN ĐẦU LÀM CHUYỆN ẤY VỚI CHAT GPT Tối nay Mr. Old Man có cuộc trò chuyện bằng tiếng Anh với Chat GPT và vô cùng bất ngờ với phản ứng cực nhanh và chính xác của anh bạn siêu thông thái trong mọi lãnh vực này. Mở đầu câu chuyện Mr. Old Man đề nghị Chat GPT … Read More
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?