QUESTION Dear Mr. Old Man, Happy Lunar New Year! We have a question related to the bill of lading as follows, I hope to receive your advice:   Field 46A (Documents required) stipulates: FULL SET OF CLEAN ON-BOARD OCEAN BILL OF LADING IN 3/3 ORIGINAL NON-NEGOTIABLE, MADE OUT TO THE ORDER OF PT. BANK MANDIRI (PERSERO) TBK., MARKED FREIGHT PREPAID, …

QUESTION Dear Mr. Old Man, I ‘d like to ask you about rules or practice related to settlement process to beneficiary as follow: Related parties in the LC: Bank A: as issuing bank Bank B: as presenting bank Beneficiary C in the LC Can bank A remit directly to beneficiary C‘s account rather than transfer to bank B’s account indicating …

Intro In documentary credit practice, it is not uncommon to see LC requirements drafted with a strong “bill of lading mindset”, even when the mode of transport is air. One such recurring requirement is the presentation of an air waybill issued “to order” and blank endorsed. This raises an important question: Is such a requirement correct, and does it make …

  QUESTION Dear Mr. Old Man, So sorry to keep asking your opinion of these matters sir but can you please give me any suggestions when an applicant requests a duplicate insurance policy in the LC itself. So my question is: Is duplicate insurance policy even valid and can be used to make claims if need be? What about the original …

QUESTION Hi Mr. Old Man. A guarantee stipulates following conditions(part): The guarantor will pay beneficiary on receipt of XXX’s written demands made to the Bank stating that in XXX’s opinion the Vendor (a) fails to observe, perform or discharge any of its obligations under the Order or (b) becomes insolvent, bankrupt or go into liquidation or otherwise put in a …

QUESTION Hi Mr. Old Man. I would like to seek your professional opinion. Master LC amount USD770,000 47a show invoice amount USD1,070,000，USD770,000 paid by LC，USD300,000 prepayment. First beneficiary request transfer LC, transferred LC amount USD720,000 47a show invoice USD800,000，USD720,000 paid by LC，USD80,000 prepayment. Can the advising bank accept the first beneficiary ‘s request? Thanks!! Kevin — ANSWER Hi, According to …

QUESTION Dear Mr. Old Man, Our customer (ABC, Singapore) has a draft SBLC to be issued in their favour and the applicant’s name is XYZ, Taiwan. No other special instruction stated in the SBLC. In the event of default of payment by applicant, the beneficiary will activate this SBLC to claim on the issuing Bank. Our customer is asking if …

QUESTION Dear Mr. Old Man, LC requires: FULL SET OF ORIGINAL INSURANCE POLICY/CERTIFICATE IN ASSIGNABLE FORM AND ENDORSED IN BLANK FOR 110PCT SHIPMENT VALUE, COVERING ALL RISKS, SHOWING CLAIM PAYABLE IN VIETNAM IN INVOICE CURRENCY AND SHOWING TOTAL NUMBER OF ORIGINALS ISSUED. The presented insurance policy shows: DEDUCTIBLE: 0.3% OF THE SUM INSURED OF THE WHOLE CONSIGNMENT. Can we raise …

QUESTION Dear Mr. Old Man, LC requests for 1 original commercial invoice. LC value USD 30,000 Amount tolerance: 10/10 Bene:  XYZ LTD, Melbourne, Australia Applicant: ABC, Melbourne, Australia Goods description: 560kgs of xxx as per PI no 123 and other details as per Purchase contract 678. DDP Melbourne, Australia Presented Commercial invoice Reflects the goods description as per LC and …

QUESTION Mr. Old man, Is it possible to issue BL or AWL consigned to two banks? Mirza  —- ANSWER Hi Mirza, I must admit that I have never come across a bill of lading or an airway bill consigned to two banks. However, it is quite possible. If the LC requires a bill of lading or an airway bill consigned …