Domestic L/C: Can the Issuing Bank Refuse a VAT Invoice Issued After the Shipment Date? Under a domestic letter of credit subject to UCP 600, can an issuing bank refuse a presentation simply because the VAT invoice was issued after the shipment date, even though this appears to be inconsistent with Vietnamese tax regulations? This question highlights the distinction between documentary examination under UCP 600 and compliance with domestic law. Question Dear Mr. Old Man, … Read More
Bill of Lading Blank Endorsed by the Shipper but Subsequently Endorsed by the Presenting Bank: Is It LC Compliant? Letters of credit frequently require a bill of lading (B/L) consigned “To order” and blank endorsed. But what happens if, after the shipper has blank endorsed the B/L, the presenting bank subsequently endorses it “To order of DEF Bank”? Is such an endorsement legally valid? More importantly, does the document still comply with the LC requirement? The following question explores … Read More
Negotiation Credit with Expiry in the Issuing Bank’s Country: Where Should Documents Be Presented? A negotiation credit is normally expected to expire in the beneficiary’s country, where the nominated bank is located. But what happens when an L/C is available by negotiation with any bank in the beneficiary’s country while the place of expiry is stated in the issuing bank’s country? This question highlights an unusual drafting issue that could expose the beneficiary to … Read More
Slot Carrier vs. Actual Carrier on a Bill of Lading – Is It a Discrepancy Under UCP 600? Introduction With the increasing use of slot charter arrangements in container shipping, bills of lading often contain references to both a slot carrier and an actual (operating) carrier, together with different bill of lading numbers. This can create uncertainty for document examiners. In this Q&A, Mr. Old Man explains what a slot carrier is and whether a difference between the … Read More
How to Send a Question to Mr. Old Man Every day, Mr. Old Man receives questions on International Trade Finance and Documentary Credits from readers around the world. For more than 20 years, these questions have been one of the main reasons why www.mroldman.net has continued to grow into a valuable source of practical knowledge for trade finance professionals. Mr. Old Man sincerely appreciates every question he receives. In … Read More
Cách gửi câu hỏi đến Mr. Old Man Mr. Old Man rất vui vì mỗi ngày đều nhận được các câu hỏi về Thanh toán quốc tế và Tài trợ thương mại từ bạn đọc trong và ngoài nước. Mr. Old Man chân thành cảm ơn vì suốt hơn 20 năm qua, chính những câu hỏi của các bạn đã góp phần làm cho website www.mroldman.net ngày càng … Read More
Letter of Invitation for Consultancy Services A branch of a foreign bank in Ho Chi Minh City recently invited Mr. Old Man to join them as a Trade Finance consultant. However, like several previous invitations, he regretfully had to decline this valuable opportunity, primarily due to health reasons.It seems that even after retirement, Mr. Old Man continues to receive opportunities to do what he loves most. … Read More
Trade Finance Career: Where Do I Begin? Introduction: Trade Finance is a fascinating field that combines banking, international trade, logistics, law, and risk management. Many professionals from different backgrounds are now considering it as a long-term career but often wonder where to start. The following question comes from a business analyst preparing for the IIBF-CITF certification and seeking guidance on building a solid foundation in international trade. … Read More
Insurance Requirement “Irrespective of Percentage” – Can It Be Removed from an LC? Introduction A reader asked whether an issuing bank may agree to amend a letter of credit by removing the phrase “irrespective of percentage” from the insurance requirement. Would such an amendment create any risk for the bank, particularly where the insurance policy or certificate is required to be endorsed in favour of the issuing bank? The answer lies in understanding … Read More
Insurance Cover Exceeding the LC Requirement – Is ICC (A) Acceptable When the Credit Requires Marine Risks or ICC (C)? Introduction Under UCP 600, banks examine whether the documents presented comply with the terms and conditions of the letter of credit. A common question is whether an insurance document is acceptable when it provides broader insurance coverage than that stipulated in the credit. In this Q&A, Mr. Old Man explains why an insurance document evidencing Institute Cargo Clauses (A) (ICC … Read More