QUESTION Dear Sir Good Day! LC shows the below clause:  SHIPMENT MUST BE EFFECTED INSIDE CONTAINERS AND B/L SHOULD EVIDENCE SO Is it enough if we show the Container Numbers Ex: CXHU4321079 without the wording “SHIPMENT IS EFFECTED INSIDE CONTAINERS”? If we don’t show the wording “SHIPMENT IS EFFECTED INSIDE CONTAINERS”, will it be a discrepancy? If not, please provide …

QUESTION Dear Mr. Old Man Hope you are doing well.  I would like to seek your advice for the following: I am quite confused with “Issued or Endorsed” and “Made Out or Endorsed” both are the same meaning?  One of my bank prefer the wording to mention as “made out or endorse”. I prefer to be mentioned “Issued or Endorsed” …

Photo: Internet As someone who spent many years working in the field of International Payments (TTQT) and Trade Finance (TTTM) at a bank—and though now retired—I continue to accompany the profession in a new role: as a consultant, supporting younger colleagues working in banks and export-import companies. In recent years, I’ve clearly felt a quiet yet profound shift—a moment when …

Là người từng nhiều năm làm việc trong lĩnh vực Thanh toán quốc tế (TTQT – International Payments) và Tài trợ thương mại (TTTM – Trade Finance) tại ngân hàng, nay đã nghỉ hưu, tôi vẫn tiếp tục đồng hành với nghề dưới vai trò tư vấn – hỗ trợ các bạn trẻ đang làm việc tại ngân hàng và …

  QUESTION: What is the difference between discounting and negotiation in the context of letters of credit? Could you clarify? ——- ANSWER: Hi, Great question — it’s one that often comes up in trade finance. Under UCP 600, the term officially used is “negotiation”, not “discounting.” According to Article 2 of UCP 600, negotiation refers to: “The purchase by the …

QUESTION Dear Mr. Old Man, Good day. Could you kindly explain whether there’s any difference between CFR FO and CFR + FO as used in letters of credit? Also, which type of shipment are these Incoterms suitable for—containerized cargo, break bulk, bulk cargo, etc.? Does this mean CFR FO (or CFR + FO) is only applicable when a Charter Party …

QUESTION Dear Mr. Old Man, I’ve come across a bit of a puzzler: The LC I’m handling shows the goods are sold on EXW (Ex Works) terms, yet it also calls for presentation of a Bill of Lading (BL). From what I understand, under EXW, the seller’s responsibility stops at their own doorstep—they’re not even obliged to load the goods. …

QUESTION Dear Mr. Old Man, I’m having trouble understanding ISBP C9, about additional charges and costs in the invoice. Could you kindly explain it? Regards, Siva —— ANSWER Hi Siva, I believe you’re referring to paragraph C10 in ISBP 821, not C9. (C9 in ISBP 745 was renumbered as C10 in the latest ISBP 821.) It reads: “Additional charges and …

QUESTION Dear Mr. Old Man, How are you? Hope you are well. I need your guidance and clarification for better understanding the difference between UCP 600 sub-article 26 (c) and ISBP 821 D31 (a) with regard to  “charges additional to freight in transport document”. Regards Siva —– ANSWER Hi, UCP 600 sub-article 26(c) says“A transport document may bear a reference, by stamp …

QUESTION Hi Mr. Old Man, I’ve been trying to find this information but couldn’t get a clear answer on Google. When an importer requests their bank to issue a usance LC, does the bank lock up the amount in his account until the LC reaches maturity? Thank you. Tengku —— ANSWER Hi, Whether a deposit is required for the issuance …