Picture obtained from South China Morning Post CORONAVIRUS AND FORCE MAJEURE Trade Services Update magazine is currently hosting a debate on force majeure in connection with the outbreak of coronavirus pneumonia in Wuhan. The situation is as follows: An L/C provides for payment at the nominated bank (NB) against complying documents. The NB is required to forward the documents to …

QUESTION Dear Mr. Old Man, When the LC only indicates UCP 600 as governing rule but not ISBP, should a bank also make references to ISBP provisions in addition to UCP when checking documents to determine clean/discrepant? Please also advise on what other occasions do we use ISBP. Thanks. ————– ANSWER Hi, According to the introduction of ISBP, the international …

QUESTION Dear Mr. Old Man, I understand that sub-article 6 (a) UCP 600 allows the beneficiary to present the documents directly to the issuing bank. However, I want to know how the issuing bank give the notice of refusal to the beneficiary in case the presented documents contain discrepancies. Thank you for your advice Best regards, L.L —– ANSWER Hi, …

QUESTION Dear Mr Old Man, I am Dang from Vietnam Prosperity bank. I know that you usually give valuable oppion for difficult cases from bank in Vietnam. Today, our bank faces with a difficult case and I would like to seek your valuable idea: L/C required: Latest date of shipment: 10 Aug 20… Period for presentation: After 21days from the …

  PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but …

QUESTION Dear Mr Old Man, Please help me to clarify my confusions about the paragraph of article 35 UCP 600, which says “If a nominated bank determines that a presentation is complying and forwards the documents to the issuing bank or confirming bank, whether or not the nominated bank has honoured or negotiated, an issuing bank or confirming bank must …

QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but it is not proper? Thanks Snježana ———- ANSWER …

Yellow sand beach, Hai Van Pass QUESTION Dear Mr. Old Man, We appreciate your answer to the following case: At the request of the applicant, we issued an L/C fully secured by the applicant’s deposit account with our bank. The documents required for presentation including 3/3 original bills of lading made out to the order of our bank notify the …

QUESTION Dear Mr. Old Man! Our company is going to open an LC but the exporter requires the LC to allow T.T.R. Though we have done some business with this exporter at FOB terms, we fear that with this clause the negotiating bank may collude with the exporter to claim reimbursement by swift message before shipment is made. Though the …

QUESTION Mr. Old Man, We are exporting some goods to Nigeria. Importer Bank is First Bank of Nigeria, confirming bank is Standard Chartered Bank, Mumbai and advising bank is State Bank of India, Nagpur, India. In our LC there is a clause, wherein through our advising bank, we have to submit 2/3 original Shipped on Board OCEAN BILL OF LADING …