QUESTION Dear Mr. Old Man, My 3rd question at noon. Sorry for taking your time but your reply makes me broaden my horizons a lot. L/C required: F41A: Available with VBAAVNVX by payment. Upon receipt at our counters in Vietnam of documents complying with LC terms and conditions, we shall pay you accordingly to your instructions. In my opinion, it is …

QUESTION Hi If date and place of expiry in letter of credit says 21st Nov 2023 Singapore. However, the documents were presented in a bank located at China. Does this constitute a discrepancy? I did not find anything in this regard in UCP or ISBP. As always thank you for your cooperation. Regards, Siddhartha — ANSWER Hi, You did not tell me which …

QUESTION Dear Mr. Old Man, Have a good day. I have a question and would appreciate your explanation. It is difficult for me to distinguish between a multimodal transport document and a bill of lading. In this case, the LC requires shipment from port of loading: Shanghai to port of discharge: Dubai. However, the transport document presented shows place of …

QUESTION Dear Mr. Old Man, Thanks for your guidance regarding my previous query of late presentation pointed out by confirming bank i.e. ICICI Bank SG. Need your expertise advice for following queries: 1) We, ABC Bank SG has checked a set of LC documents and certify clean and sent to IB in India. LC indicated upon receipt of compliance documents …

QUESTION Good morning, Mr. Old Man Actually, I felt rather awkward calling you “Mr. Old Man” when you look so young in the picture! I have one question need your expert opinion: My customer (applicant) would like to open an L/C to a Singapore bank. Beneficiary showing Hong Kong address. Applicant requested the place of expiry to show “Singapore or …

QUESTION Hi, Mr. Old Man! I have a question to discuss. I found an insurance policy that indicates the assured to be ABC CO. LTD. on behalf of XYZ CO. LTD How to endorse the insurance policy? Thanks for your attention. Kevin —— ANSWER Hi In my humble opinion: ABC Co., Ltd is eligible to endorse the insurance policy as …

QUESTION Dear Mr. Old Man, Please give your comments for the below case: At the request and for account of the applicant, we issued an LC for an amount not exceeding USD 500,000. As the cargo had arrived before the documents were presented to our bank, at the request of the applicant we issued a shipping guarantee in favour of …

QUESTION Dear sir, Please provide your opinion on the matter below. We have issued a back-to-back LC against a master LC.  The beneficiary’s bank made the presentation under the back-to-back LC but unfortunately documents have been lost in transit. Now what steps can we take to make presentation under the master LC to receive payment and settle the back-to-back LC …

QUESTION Dear Mr. Old Man, I have below doubts. Applicant: X Beneficiary: Y Shipper: Z Issuing Bank: Sun Bank Case 1: – Can the invoice indicate Z as Consignor and X as Consignee? – Can the BL indicate Z as Consignor and X as Consignee? – Can the C/O indicate X as Consignee? Case 2: If the LC requires BL …

In real life, many discrepancies do not arise because the rules are unclear, but because the timeline in a credit is not carefully read. The short Q&A below illustrates two issues that appear quite often in practice: the meaning of “any safe port” and the relationship between the presentation period and the expiry date. QUESTION Good morning, Sir! An LC …