CONSIGNEE ON INVOICE, BILL OF LADING, CERTIFICATE OF ORIGIN 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 … Read More
ANY SAFE PORT – LATE PRESENTATION – LC EXPIRED 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 … Read More
LET’S KICK OFF THE NEW YEAR OF THE DRAGON WITH Q&A RELATED TO ISBP Mr. Old Man khởi động năm mới Giáp Thìn bằng cách trả lời một loạt câu hỏi liên quan đến quy định của ISBP mà Mr. Old Man nhận được trước Tết 3 ngày. Bình thường Mr. Old Man trả lời ngay nhưng vì bạn ấy gửi một lúc quá nhiều câu hỏi nên đành khất sang năm mới. HAPPY … Read More
TYPES OF LC QUESTION Dear Mr. Old Man, This is Rookie Boy, works as an international trader, I want to ask you a question, and hope get your help. Before creating a new LC, the applicant should send a apply letter to the issuing bank, and in the letter, there is the form as follows: Credit Available With advising bank [ ] By … Read More
QUESTIONS ABOUT D/P AT xx DAYS FROM B/L DATE and CLEAN COLLECTIONS QUESTION Dear Mr. Old Man, I have some questions to ask you: 1) Why do banks reluctantly accept D/P 90 days after B/L date? 2) Why do banks provide clean collections of checks only, and not bills of exchange? Best regards, ————– ANSWER Hi, 1) Why do banks reluctantly accept D/P 90 days after B/L date? According to ICC Opinion … Read More
WHERE GOODS ARE CONSIGNED TO THE ORDER OF THE COLLECTING BANK QUESTION Dear Mr. Old Man, We are the importer’s bank. We are encountering a situation related to a documentary collection transaction as follows: We received from the remitting bank a set of D/P documents including original bills of lading consigned to the order of our bank. We notified the importer of the same. However, the importer refused to take up … Read More
WHETHER TO SEND DOCUMENTS ON APPROVAL BASIS TO THE ISSUING BANK or THE CONFIRMING BANK? QUESTION Dear Mr. Old Man, We as the second advising bank and the beneficiary’s bank received MT 710 from Bank B (Country B) with the following details: Field 40B (Form of Documentary Credit): IRREVOCABLE ADDING OUR CONFIRMATION Field 52A (Issuing bank): BANK A (in Country A) Field 41A (Available with … by): BANK B BY NEGOTIATION … The beneficiary … Read More
WHETHER A CONGENBILL IS A CHARTER PARTY BILL OF LADING Intro In LC practice, confusion between liner bills of lading and charter party bills of lading is still very common. Things become even messier when an LC specifically names a Congenbill form but does not explicitly say: “Charter Party Bill of Lading acceptable.” Does that omission automatically mean that only an ocean (liner) bill of lading is allowed? The following … Read More
LIỆU CÓ PHẢI GIAO DỊCH RỬA TIỀN? QUESTION Em chào anh, Liên quan đến Rửa tiền, em kính nhờ anh giúp em một case mà em chưa có cơ sở từ chối. Khách hàng bên em nhập khẩu than. Tuy nhiên, hợp đồng qui định phải ứng trước tiền khoảng 20-50%, và khoản ứng trước này phải được thanh toán bằng LC dựa trên hoá đơn và … Read More
WHERE THE DOCUMENTS WERE DESTROYED QUESTION Dear Mr. Old Man, I have a question for you. Let’s assume that the nominated bank received a presentation from the beneficiary and determined that the documents were complying with the terms and conditions of the LC. However, the documents were destroyed by accident while waiting for DHL to pick up. Can the nominated bank claim reimbursement from the … Read More