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 A CONFIRMING BANK INSIST ON INCLUDING A REIMBURSING BANK IN AN LC? Intro From time to time, confirming banks request that an LC be amended to nominate a reimbursing bank, or even to obtain a reimbursement undertaking. A reader recently asked whether this practice is supported by ICC rules, or whether it is simply a matter of banking practice and risk management. It is a good question, because many practitioners assume that … Read More
WHEN DOCUMENTS ARE PRESENTED AFTER THE LC EXPIRY DATE QUESTION Dear Mr. Old Man, I have a question as follows: Is there any ICC opinion on the situation where the issuing bank can return the documents on the grounds that the documents are presented after the LC expiry date? If the Applicant has received the goods, is the issuing bank obliged to pay the documents? Is there a case … Read More
CAN AN LC AVAILABLE BY NEGOTIATION BE ISSUED WITHOUT REQUIRING PRESENTATION OF DRAFTS? QUESTION Dear Sir, This is Jawad from Askari Bank Pakistan. Please answer my question below: We issued LC available by negotiation and we did not include “All drafts” clause in 47A. Applicant has requested for Amendment in LC today and wants to add Clause in field 47 as below: ‘Drafts / bill of exchange not required.’ Please suggest if we … Read More
IS IT A DISCREPANCY IF ICE NUMBER NOT REQUIRED BY THE LC IS ADDED TO THE ADDRESS AND CONTACT DETAILS OF THE NOTIFY PARTY ON THE BILL OF LADING? QUESTION Dear Sir We have an LC showing Applicant Name and Address without the ICE NUMBER: 001343300000073. The BL shows this ICE Number: 001343300000073 in Notify Party. Will this be a Discrepancy? Also, if this is not a discrepancy, can you quote the Clause from ISBP proving this. Regards C.R. Nishanth —- ANSWER Hi, According to UCP 600 sub-article 14 (j), … Read More
MUST THE STATEMENT OF DEFAULT BE PRESENTED WITHIN THE VALIDITY OF THE SBLC? QUESTION Dear Mr. Old Man, At the beginning of the lunar new year, we wish you and your family good health, peace and prosperity. We would like to ask you to advise me on the following case: At the request of our customer (Applicant), our bank issued an MT 760 SBLC in favor of ABC Company (Beneficiary). The SBLC contains … Read More
LC REQUIRING PRESENTATION OF 3/3 ORIGINAL NON-NEGOTIABLE BILL OF LADING QUESTION Dear Mr. Old Man, Happy Lunar New Year! We have a question related to the bill of lading as follows, I hope to receive your advice: Field 46A (Documents required) stipulates: FULL SET OF CLEAN ON-BOARD OCEAN BILL OF LADING IN 3/3 ORIGINAL NON-NEGOTIABLE, MADE OUT TO THE ORDER OF PT. BANK MANDIRI (PERSERO) TBK., MARKED FREIGHT PREPAID, … Read More
SHOULD THE CONCEPT OF “NEGOTIATION” CONTINUE TO EXIST IN THE UCP? Nguyen Huu Duc The recent UCP revision process has had debates on the question “Should the concept of “negotiation” continue to exist in the future UCP revision?”. Some experts believe that ICC should remove the type of letter of credit available by negotiation from the upcoming UCP revision, while many experts believe that the concept of “negotiation” should continue to … Read More
LIỆU KHÁI NIỆM “CHIẾT KHẤU” CÓ NÊN TIẾP TỤC TỒN TẠI TRONG UCP? Về vấn đề chiết khấu (negotiation) trong giao dịch thư tín dụng, gần 20 năm trước Mr. Old Man đã có nhiều bài viết đăng trên các tạp chí ngành tài chính – ngân hàng như: Bàn về vấn đề chiết khấu trong giao dịch thư tín dụng (Tạp chí Ngân hàng số 10 tháng 5/2007); Bàn về thuật ngữ … Read More
CAN THE ISSUING BANK AUTHORIZE THE REIMBURSING BANK TO REIMBURSE DIRECTLY TO THE BENEFICIARY’S ACCOUNT? QUESTION Dear Mr. Old Man, I ‘d like to ask you about rules or practice related to settlement process to beneficiary as follow: Related parties in the LC: Bank A: as issuing bank Bank B: as presenting bank Beneficiary C in the LC Can bank A remit directly to beneficiary C‘s account rather than transfer to bank B’s account indicating … Read More