One of the less obvious issues under ISBP 821 concerns the consignee shown on a certificate of origin when the letter of credit requires a bill of lading to be issued or endorsed to the order of the issuing bank. Does it matter if the bill of lading is originally issued to the order of the beneficiary and only later …

A change in the identity of the beneficiary under a demand guarantee may arise not from a transfer of the guarantee, but from legal succession under the applicable law, such as inheritance or donation. In such cases, should the guarantor treat the change as a transfer under Article 33 of URDG 758, or simply amend the guarantee to acknowledge the …

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A reader raised an interesting follow-up question after my previous Q&A on contact names and addresses in letters of credit. If a document shows an address or contact name that differs from the credit, can it simply be regarded as additional information? Or does it become conflicting data that gives rise to a discrepancy? The distinction is subtle but important. …

Intro Letters of credit occasionally state the unit price as USC per KG rather than USD per KG, which can cause confusion. Here’s what it means. Question Dear Mr. Old Man, I hope this email finds you well. I came across the following scenario today. Field 45A of the LC describes the goods as Wool, and the unit price is …

It is not uncommon for an L/C to include the name of a contact person or an authorized representative as part of the beneficiary’s or applicant’s address. But does the omission of that name on documents such as an inspection certificate or certificate of origin create a discrepancy? The answer depends on both the type of document involved and the …

A reader recently asked whether a confirming bank typically requires an issuing bank to incorporate protective clauses into a documentary credit before agreeing to add its confirmation. The question focused on clauses relating to sanctions compliance, force majeure, fraud or illegality, and country and transfer risk. This is an interesting practical question because, in international banking practice, confirming banks generally …

Banks occasionally issue letters of credit that exclude one or more provisions of UCP 600. However, merely excluding an article without explaining the intended consequence may create uncertainty for beneficiaries and banks handling the credit. The following question examines the effect of excluding articles 7(c) and 12(b) of UCP 600. Question Dear Mr. Old Man, An L/C contains the following …

A reader asked whether an Air Waybill (AWB) can be presented under a documentary credit where the goods move by air to the destination airport and then by truck to the applicant’s warehouse under DDP terms. The question raises an interesting distinction between what UCP 600 permits from a document examination perspective and what is normally achievable in practice. Question …