WHY TRANSSHIPMENT IS ALLOWED FOR GOODS SHIPPED IN A CONTAINER, TRAILER, OR LASH BARGE QUESTION Hello Sir, I hope you are doing well. Sir, I have a query that I hope you can help me with. Sub-article 20 (c) (ii) of UCP 600 allows transshipment if goods are shipped in a container, trailer, or LASH barge. Why is transshipment permitted in these cases? Regards, Ahtisham Ali ————– ANSWER Hello, In my understanding, it is … Read More
GUIDANCE ON HANDLING A NOMINATED BANK’S DEFAULT QUESTION Dear Mr. Old Man, I need your guidance in the following scenario: If a Nominated Bank has incurred its deferred payment undertaking or has accepted a draft drawn on it but fails to honour at maturity, then what options does the beneficiary have? Please clarify. Regards, Siva Prasad —— ANSWER Hi Siva, According to UCP 600 sub-article 7 (a) (iii) and … Read More
HANDLING UNIT PRICE CHANGES IN CRUDE OIL L/C AMENDMENTS QUESTION Dear Sir, I hope this message finds you well. I would like to seek your guidance regarding the handling of amendments to a Crude Oil Letter of Credit (L/C). At the time of L/C issuance, we received two proforma invoices indicating a unit price of USD 80.620 per barrel. Subsequently, the customer requested an increase in the L/C amount. … Read More
WHEN THE NOTIFY PARTY’S ADDRESS DIFFERS FROM THE APPLICANT’S ADDRESS QUESTION Dear Sir, Good day! I have one Doubt. L/C shows Field 50 (Applicant) as below: EAST AFRICAN PHARMACEUTICALS PLC ST. ST. SALITMEHERET CHURCH ROAD, NEAR TO JACROSHOUSING COMPOUND ROBERA COFFEE FACTORY TEL: +251116461456/57 TIN 0000034121 Whereas The AWB Clause shows as below: SIGNED AND STAMPED ORIGINAL AIRWAY BILL PLUS ONE COPY MARKED FREIGHT (PREPAID) ISSUED IN THE NAME OF … Read More
CLARIFICATION OF UCP 600 ARTICLE 11 WITH REGARD TO TELETRANSMITTED & PRE-ADVISED LETTERS OF CREDIT & AMENTMENDS QUESTION Hi Mr. Old Man, How are you? Hope this email finds you well. I need your kind support in understanding UCP 600 ARTICLE 11. Please share any case studies or opinions shared by you for this Article. Regards Siva Prasad —- ANSWER Hi Siva, In fact, the provision in Article 11 of UCP 600 is very clear. If you read it carefully, you … Read More
CAN AN LC BE GOVERNED BY BOTH LOCAL LAW AND UCP? QUESTION Dear Mr. Old Man, I appreciate your insights on the following matter: Can a Letter of Credit (LC) be subject to both the laws of a specific country and the Uniform Customs and Practice for Documentary Credits (UCP)? Best regards, Zeev ANSWER Dear Zeev, In my 35 years of experience in trade finance, I have yet to come across … Read More
DRAFTS AND NOMINATED BANK UNDER LETTERS OF CREDIT SUBJECT TO UCP 600 QUESTION Dear Mr. Old Man, I seek your guidance on international trade practices concerning drafts in Letters of Credit (LC) transactions: 1. Under what terms of an LC is the presentation of a draft required? 2. Clarification on the role of a Nominated Bank: If an LC is available with Bank A for negotiation, how should the nominated bank be … Read More
QUESTION REGARDING DOCUMENT PRESENTATION AFTER LC EXPIRY QUESTION Dear Mr. Old Man, I have a question regarding the presentation of documents after the expiration of an LC, as follows: • Date and Place of Expiry: April 18, 2025, in Vietnam • Latest Shipment Date: March 30, 2025 • Estimated Time of Departure: April 21, 2025 Given this schedule, I advised the beneficiary to request an amendment from … Read More
CLARIFICATION ON PAYMENT INSTRUCTIONS IN COVERING SCHEDULE QUESTION Dear Mr. Old Man, I hope you are doing well. I have a small query regarding document presentation and payment instructions. We are the beneficiary bank, acting as the Presenting Bank. The beneficiary submitted documents to us for forwarding to the nominated bank for negotiation, as the LC restricts negotiation to the nominated bank. When forwarding the documents, we … Read More
WHEN A BILL OF LADING MUST INDICATE ACTUAL PORT OF DISCHARGE QUESTION Dear Sir, My letter of credit (LC) specifies the Port of Discharge as “BAHRAIN INTERNATIONAL AIRPORT AND/OR ANY SEAPORT OF BAHRAIN.” For a sea shipment, if we indicate the Port of Discharge as “Bahrain Seaport of Bahrain” or “Bahrain, Bahrain” on the bill of lading, would either of these be considered a discrepancy? Additionally, could you please provide the … Read More