Điều 2 UCP 600 định nghĩa thư tín dụng là một thỏa thuận không thể hủy ngang, bất kể được gọi tên hay mô tả như thế nào, và cấu thành một cam kết chắc chắn của ngân hàng phát hành về việc thanh toán khi xuất trình phù hợp.

Introduction Mr. Old Man received two questions concerning commercial invoices presented under a letter of credit (L/C): whether additional charges can be included in the invoice when the L/C allows a tolerance, and whether the unit price can be reduced when it is not specified in the L/C. Question Dear Mr. Old Man, I have two questions and would appreciate …

Introduction An insurance policy may contain several exclusion clauses. But does the presence of additional exclusions automatically make the insurance document discrepant under a Letter of Credit (LC)? The answer is not necessarily. Under UCP 600, we need to distinguish between the acceptability of exclusion clauses and whether the insurance document provides the coverage specifically required by the LC. Let …

Intro In documentary credit operations, should a bank raise a discrepancy simply because a document contains a reference in a different format from those seen on previous presentations? Not necessarily! The key is to examine what the LC actually requires, rather than assume that a familiar format has become a mandatory requirement. In this Q&A, Mr. Old Man considers whether …

Introduction In international trade, the beneficiary of a letter of credit (L/C) is not necessarily the party that physically ships the goods. This often happens in transactions involving traders, transferable L/Cs, or back-to-back L/Cs. Sub-article 14(k) of UCP 600 addresses this issue, but does it mean that the shipper must be different from the beneficiary? Mr. Old Man shares his …

An unusual guarantee structure raises an important question: Can a bank obtain legal protection from a counter-guarantee issued by another part of the same bank? Mr. Old Man shares his views on the legal and credit risks involved. Question Dear Mr. Old Man, Our bank is considering a transaction in which our head office would issue a counter-guarantee, while our …

Intro A simple typing error can sometimes lead to an unnecessary dispute in documentary credit operations. But can an incorrectly dated covering schedule justify a late-presentation discrepancy when the documents were actually presented within the stipulated time limit? In this case, the issuing bank refused to withdraw the discrepancy and intended to deduct a discrepancy fee from the proceeds of …

A Question Worth Discussing An amendment changes the applicant’s address, but the bill of lading still shows the original address as required by the original L/C. The confirming bank refuses the documents, citing UCP 600 sub-article 14(j). Is the bank right, or has it overlooked a fundamental principle governing the acceptance of amendments? Arun Ambar raises an interesting question about …

Introduction The place of expiry is sometimes confused with the country of the advising bank or the place where documents are presented. But are they necessarily the same? Jawad from Pakistan raises an interesting question. Question Dear Sir, I hope you are doing well. I have a question regarding the expiry place of an LC. We received an LC where …

A Question Worth Discussing This is an interesting question from Ahtisham that made me stop and think about the interaction between UCP 600 Articles 18(b) and 30(b). At first glance, the two provisions seem to point in different directions. Article 30(b) permits a quantity tolerance of up to 5%, but expressly requires that the total amount of the drawings not …