House Bill of Lading vs. Marine Bill of Lading: How to Distinguish them? QUESTION Dear Sir I have received an LC with the below clause. It states that the Marine Bill of Lading to be presented. + AS PER MOROCCAN EXCHANGE RULES, THE TRANSPORT DOCUMENTS HOUSE AIR WAYBILL (HAWB) AND FORWARDER’S CERTIFICATE OF RECEIPT (FCR) ARE NOT ACCEPTED, HOUSE BILL OF LADING(HBL) AND FIATA BILL OF LADING (FBL) ARE ACCEPTED IF AND ONLY IF ACCOMPANIED … Read More
Understanding ‘Full Set Less One’ & Discrepancy Fee Claims After Reimbursement QUESTION Dear Mr. Old Man, We would appreciate your comments on the following: Question 1: The letter of credit states in Field 46A: “Full set less one original bill of lading.” If the bill of lading indicates that it was issued in 3 originals (e.g., 3/3), would the presentation of 2 original bills of lading be considered compliant with the … Read More
Does a Bill of Lading Have to Show Trade Terms like CIF? QUESTION Dear Sir I have one small doubt about Description of Goods in BL. The L/C shows Description of Goods as below. +MEDICAL EQUIPMENTS MODEL: CX200NFJ +AS PER P/I NO. 565221 DATED 15-12-2024 H.S CODE 9004100 +CIF ALEXANDRIA SEAPORT, EGYPT +INCOTERMS 2020 The Liner has come back to us stating that they cannot mention “CIF ALEXANDRIA SEAPORT, EGYPT INCOTERMS 2020” … Read More
Back – to – Back LCs and CAD: Clearing the fog for Traders QUESTION Dear Mr. Old Man, I hope you are doing well. I seek your insights on two points: Regarding back-to-back Letters of Credit, I’ve understood that banks typically require collateral beyond the master LC itself, as it might not be a sufficient guarantee. However, reputable banks like UOB, DBS, and BCP Bank (Mauritius) state on their websites that the master LC can indeed … Read More
Italy, Drafts, and Stamp Duty: Why Confirming Banks Prefer ‘Available by Payment’ in LCs QUESTION Dear Mr. Old Man, I have a scenario that I’d appreciate your thoughts on: The issuing bank is located in Singapore. The advising/confirming bank is in Trieste, Italy. In the original LC, Field 31D (Date and Place of Expiry) is: 18 June 2025 – Singapore. Field 41A (Available With… By) is: Available with the confirming bank by NEGOTIATION. The … Read More
Compliance of Multi-Endorsed BL with LC Terms QUESTION Dear Mr. Old Man, I have a question that needs your help. An LC issued by AGRIBANK requires the bill of lading to be “made out to order of AGRIBANK.” However, the presented bill of lading is made out to the order of BNP Paribas (Suisse) SA, and is endorsed in succession as follows: • BNP Paribas (Suisse) SA … Read More
MEMO: Handling of Drafts and Documents under LC with Draft Drawn on Nominated Bank Subject: LC issued by K. BANK – Refusal to Confirm and Subsequent Presentation From: Mr. Old Man Date: 4 June 2025 Background Bank N received a letter of credit (LC) from K. BANK with the following terms: 41A: Available With Bank N By Negotiation 42A: Drawee: Bank N 42C: Draft: At Sight 47A: T/T Reimbursement is Not Allowed 49: Confirmation … Read More
CAN AN ASSIGNEE CONTROL LC AMENDMENTS? A LOOK AT ARICLE 39 OF UCP 600 QUESTION Dear my expert friend “Old Man”, I have the following question: A beneficiary received a confirmed Letter of Credit issued by Bank A. The beneficiary assigned the proceeds to Bank B and subsequently requested Bank B to issue another Letter of Credit. Is Bank B entitled to require the beneficiary to waive their right to accept or reject … Read More
Silent Confirmation Charges: Applicant or Beneficiary? QUESTION Dear Old Man, Please guide: Scenario: – LC issued MT-700 by MCBLMUMUXXX MAURITIUS – LC received and transmitted by BOMLAEADFTC UAE to BAFL-India via MT-710 – LC requested and confirmed by BOMLAEADFTC UAE – All charges outside (ALL LOCAL AND FOREIGN WHETHER WITHIN OR OUTSIDE IS ACCOUNT OF APPLICANT) – Available by BOMLAEADFTC UAE Payment – 1st confirming bank: … Read More
UNDERSTANDING THE 21 – DAY PRESENTATION RULE UNDER UCP 600 One of the most misunderstood provisions in documentary credits is the famous “21-day rule” under Article 14(c) of UCP 600. Some bankers treat it as a rule applicable only to the bill of lading. Others assume that as long as documents are presented before the L/C expiry date, everything is fine. And then comes the classic confusion: “If the credit … Read More