A question from Jawad Ahmed, Pakistan, raises two interesting issues in documentary credits: Can an LC requirement be deleted by amendment after documents have already been presented and a discrepancy has been raised? Can the requirement for a draft at sight in Field 42C be removed? Here is my answer. Question Dear Sir, Hope you are doing well. I wanted …

Introduction When a letter of credit is available by negotiation and Field 42C identifies the Issuing Bank as the drawee, does the beneficiary necessarily have to present a draft? Or can the Issuing Bank reject the documents if no draft is presented? This question from Firas raises an interesting point about the role of drafts under documentary credits and, in …

A question from Jawad Ahmed, Pakistan, regarding the relationship between the latest date of shipment, the actual shipment date and the period for presentation under an LC. Question Dear Sir, I hope you are doing well. I wanted to ask regarding the subject matter. Can you please clarify Field 44C, i.e. the latest date of shipment, and the shipped on …

Introduction This question illustrates a common misunderstanding: a presentation period stipulated in the LC does not operate independently of the LC expiry date. Even where the stipulated period extends beyond the expiry date, the beneficiary cannot use that period to keep the credit alive after expiry. Question Dear Mr. Old Man, LC expiry date: 1/8/2026 Latest shipment date: 1/8/2026 Field …

Introduction The wording used in a letter of credit can sometimes appear more demanding than the wording normally used on a transport document. This raises an interesting practical question: when an L/C requires a “clean shipped on board” bill of lading, can a B/L showing only “shipped on board” be accepted? In this case, the shipping line’s policy does not …

Introduction A question sometimes arises when a documentary credit requires a certificate to be issued by one of several parties, expressed using slash marks, but the presented certificate appears on the beneficiary’s letterhead while being signed and stamped by a freight forwarder. The question is whether the difference between the letterhead and the signatory constitutes a discrepancy. Question Dear Mr. …

Question Cháu chào chú ạ, Hiện tại cháu đang công tác tại Phòng Thanh toán quốc tế của Ngân hàng. Cháu có một số câu hỏi muốn nhờ chú giải đáp vì cháu chưa có nhiều kinh nghiệm trong việc thanh toán đối với doanh nghiệp kinh doanh chuyển khẩu hàng hóa. Đây là một công ty Việt Nam kinh …

Introduction A reader recently asked whether I have encountered an LC requiring both ocean and land transport documents under the same LC and what risks such an arrangement may create for the beneficiary and the applicant. That is enough—it sets up the Q&A naturally without giving away the answer. Question Dear Mr. Old Man, I’d like to ask you a …

Introduction A documentary credit normally requires a commercial invoice, but does UCP 600 limit the presentation to only one invoice when a single shipment contains goods of different origins? Dani raises an interesting practical question concerning a shipment containing both Country A-origin goods and goods of other origins. Because the importer needs preferential-origin treatment for the Country A goods, the …

 Introduction When a charter party bill of lading (CPBL) is issued “to order”, the question of who should endorse it can become less straightforward when the shipper is described as acting “on behalf of” another party. ISBP 821, paragraph G12, provides specific guidance on this issue, and ICC Banking Commission Opinion TA944rev further clarifies the acceptability of an endorsement by …