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
LC STATES TRANSSHIPMENT ALLOWED WHEREAS INSURANCE POLICY SHOWS TRANSSHIPMENT NOT ALLOWED QUESTION + LC states: Transshipments allowed + Insurance policy presented indicates: Transshipment not allowed The issuing refused the documents citing the discrepancy “Insurance policy indicates “transshipment not allowed”, which conflicts with LC”. The presenting bank rejected the discrepancy arguing: “The LC allows transshipment; however, the shipper uses direct service from Cai Mep Port, Vietnam, to Busan, South Korea, without transshipment. … Read More
CAN THE ISSUING BANK REFUSE TO HONOUR THE CONFIRMING BANK IF IT FINDS THAT THE DOCUMENTS PRESENTED CONTAIN DISCREPANCIES? QUESTION Dear Mr. Old Man, Would appreciate your feedback on the following: Issuing bank issues an LC which is confirmed by the nominated bank. In field 78 issuing bank has stated that payment in favour of the confirming bank will be affected 4 bank working days from the date of the confirming bank’s swift to the issuing bank stating that … Read More
SHORT SHIPMENT OR PARTIAL SHIPMENT? Actually, this is not a Q&A but rather a discussion between me and Bogdan, a trade finance expert I have known since we were both editors of LC Monitor (Trade Services Update) 15 years ago. However, the interesting thing is that it was only now that Bogdan discovered that I am also known as Mr. Old Man, when he searched … Read More
CAN THE APPLICANT CHANGE THE BENEFICIARY’S ADDRESS AS PER THE BENEFICIARY’S STAMP ON THE PROFORMA INVOICE? QUESTION Dear Sir, The beneficiary’s address on the proforma invoice is slightly different from the stamp of beneficiary on it. So, the applicant wants to change the address as per stamp. Is this allowed? Regards Jawad Askari Bank Pakistan. —- ANSWER Hi, LC would be issued based on the contract or proforma invoice provided by the applicant. However, LC by … Read More
ORIGINAL BILLS OF LADING MUST INDICATE NUMBER OF ORIGINALS ISSUED QUESTION Dear Mr. Old Man, The beneficiary provides a draft bill of lading to his bank for checking before the shipping line issues the original bill of lading. The draft bill of lading shows “No of Copies: THREE (3)” (see attachment). The bank notes that the words “No of Copies” should be changed to “Number of Originals”. Do you think … Read More
LETTERS OF CREDIT V. CONTRACTS QUESTION Dear Sir, As always, your help is really appreciated. Need your expert opinion on the scenario below: There is a change in the unit price of a product in the presented original documents which is more/less than the actual price mentioned in the Letter of credit. However, the Proforma invoice indicates that the rate could change on the basis … Read More
INSURANCE CERTIFICATE COVERING ALL RISKS AND WAR RISK CONTAINS INSTITUTE WAR CANCELLATION CLAUSE Special Q&A with comments from TSU editors who are international experts on letters of credit. It may be published in the next issue of LC Monitor/Trade Services Update. QUESTION Dear Mr. Old Man, This is Phoebe. I’ve been your follower since 2021 when I started to work in the import-export industry, and firstly I’d like to say thank you for … Read More
WHEN DOES THE CONFIRMING BANK INSIST ON THE LC TO INCLUDE A REIMBURSEMENT BANK? QUESTION Dear Mr. Old Man, I hope you are having a good day. Referring to your article “Bank to bank reimbursement under LCs” on March 5, 2010 I have asked a question. If the nominated bank is adding its confirmation to LC, can it request the issuing bank to amend the LC to include a reimbursing bank to get control … Read More
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?