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 …

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: …

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 …

This Q&A is a continuation of the Q&A regarding Hong Kong being a Chinese port ⸻ QUESTION Dear Mr. Old Man, I’ve heard that if an L/C stipulates the port of loading as “Any port in China” or “Any Chinese port,” then a bill of lading showing Hong Kong as the port of loading is acceptable. Could you confirm if …

QUESTION Dear Mr. Old Man, Your opinion on the following matter would be much appreciated: An LC specifies the following conditions: Port of loading : Any Chinese port Delivery terms: FOB any Chinese port However, the documents presented show: Bill of Lading: Shipped on board at Hong Kong Commercial Invoice: Delivery terms stated as FOB Hong Kong I understand that …

QUESTION Hi sir, Hope this mail finds you well. I wanted to confirm regarding an L/C that allows reimbursement authority under Field 49 marked as “MAY ADD.” Our bank maintains a Nostro account, and we usually issue MT740 to authorize the reimbursing bank to pay when claimed by the nominated or negotiating bank. Can we also add reimbursement authorization in …

QUESTION Dear Mr. Old Man, Seek your view on the below- LC calls for original survey report by SGS. The document presented is a photocopy in black and white  with the word “ORIGINAL” stamped on it with red ink.  The SGS signatures are also not original.  LC does not require manual signature. Therefore, per UCP article 17 C iii, is it …

QUESTION Hi Sir, Hope everything is going well. I wanted to highlight a confusion of mine its more of a silly question. The thing is in an insurance policy we need to know the overall coverage of the insurance from the place of loading the consignment to its ultimate destination. Sometimes we find the policy only mentions the actual voyage details only, …

QUESTION Chào Mr. Old Man, Nhờ Mr. Old Man giải đáp giúp  2 tình huống sau: 1. Ngân hàng trong nước có được phép phát hành bảo lãnh quốc tế bằng ngoại tệ cho doanh nghiệp Việt Nam để tham gia đấu thầu quốc tế không? 2. Ngân hàng trong nước có được phát hành bảo lãnh thay mặt cho …

QUESTION Dear Mr. Old Man, I have a question regarding the discounting of documents under a letter of credit. Normally, when discounting documents under an LC, banks require the presentation of a draft (bill of exchange) as a mandatory document. However, in the case of an LC available by deferred payment, where no draft is required, is it still necessary …