LC AVAILABLE BY NEGOTIATION VS LC AVAILABLE BY PAYMENT QUESTION Dear Mr. Old Man, It is very common that we see the LC available with “any bank” or name and address of a bank by negotiation. Today, I received a LC available with any bank in India by “Payment” What does it mean? How it works? Is it beneficial for beneficiary? Request you all to throw light in detail. Urgent … Read More
USANCE LC AVAILABLE WITH ANY BANK BY NEGOTIATION QUESTION Kính thưa bác Nguyễn Hữu Đức Kính nhờ bác giải đáp giúp con liên quan đến quy trình thanh toán L/C trong trường hợp này ạ. Issuing Bank: Wells Fargo Bank, Los Angeles, United States. Swift code: PNBPUS6L Advising Bank: Bank for Foreign Trade of Vietnam (VIETCOMBANK), Ho Chi Minh City Branch. Swift code: BFTVVNVX007 Applicant: Importer in Los … Read More
REVISED DOCUMENTS MUST BE RE-PRESENTED WITHIN THE PERIOD FOR PRESENTATION AND BEFORE THE EXPIRY DATE OF THE LC QUESTION Dear Mr. Old Man, As per ICC Opinion R 819, the beneficiary had until expiry date of LC to replace or correct the documents and/or presentation period. The issuing bank is obliged to honour when upon re-submission, documents are determined to be compliant. The revised documents constituted a new presentation requiring examination as per art. 14 b. Is the … Read More
DISCOUNTING A DPU INCURRED BY ISUING BANK QUESTION Dear Mr. Old Man, I have a question regarding the situation where a non-nominated bank wants to prepay a DPU incurred by issuing bank as follows: . Bank C is the confirming bank of the LC issued by Bank I (Issuing Bank). The LC is available with Bank C by Deferred Payment. Bank C added its confirmation and … Read More
DISCREPANCY OF “EARLY PRESENTATION” QUESTION Dear Mr. Old Man, Occasionally LCs have clause like- 48: after 21days after BL date but within validity of LC Or another unique case 48: 21/ refer 47A 47A: After 21days of shipment but within validity of LC I believe it should rather have a clause stating, payment will be effected 21 days after BL, if the intention is … Read More
CAN THE ADVISING BANK ADVISE THE LC DIRECTLY TO THE BENEFICIARY,BYPASSING THE SECOND ADVISING BANK? QUESTION Dear Mr. Old Man, We have received and LC from the Issuing bank. There is also a 2nd advising bank given in the LC. The beneficiary is our client as well. If the beneficiary is ok can we advise the LC directly to them or should we necessarily follow the route of the 2nd advising bank to advise the … Read More
HOW TO DETERMINE SHIPMENT DATE IN A CHARTER PARTY BILL OF LADING? QUESTION Dear Mr. Old Man, I have a query regarding on board date for a Charter party BL BL states as below “SHIPPED ON BOARD FREIGHT PAYABLE AS PER CHARTER PARTY XXXXX XXXXX LOADING COMPLETED ON 23 May 2024” No other on board notation anywhere. And date of issue is 23 Jul 2024 What will be the shipment date for … Read More
THE ABSENCE OF AN LC NUMBER OR MISTYPING THAT NUMBER ON A DOCUMENT DOES NOT CONSTITUTE A REASON FOR REFUSAL QUESTION Top urgent Mr. Old Man, Bank S in UAE has stopped our payment by pointing out a single discrepancy that charter party bill of lading evidences LC issue date 24.6.24 instead of 21.6.14. However, LC not demands LC number or issue date nowhere in 46a or 47a. Moreover, Field 47A of LC says “obvious typography, spelling errors are … Read More
WHY SHOULD AN ISSUING BANK NOT REQUIRE A SIGHT DRAFT TO BE DRAWN ON THE REIMBURSING BANK? QUESTION Dear Mr. Old Man, I hope this email finds you well. I came across URR 725 while studying for CDCS and found some points unclear for me. Would you please kindly share your thoughts about the following questions? Question 1: Articles 6e-iii and 9c-iii: “An issuing bank should not require a sight draft to be drawn on the reimbursing bank”. According … Read More
WHERE MT 700 DOES NOT CONTAIN FIELD 43P QUESTION Dear Mr. Old Man, We received a SWIFT MT 700 which does not contain Field 43P (Partial shipments). I want to know whether partial shipments are allowed or not allowed. Thank you for your clarification. Best regards, PTT —- ANSWER Hi, Field 43P (partial shipments) specifies whether or not partial shipments are allowed under the LC. This field is … Read More