CLARIFICATION OF UCP 600 ARTICLE 11 WITH REGARD TO TELETRANSMITTED & PRE-ADVISED LETTERS OF CREDIT & AMENTMENDS QUESTION Hi Mr. Old Man, How are you? Hope this email finds you well. I need your kind support in understanding UCP 600 ARTICLE 11. Please share any case studies or opinions shared by you for this Article. Regards Siva Prasad —- ANSWER Hi Siva, In fact, the provision in Article 11 of UCP 600 is very clear. If you read it carefully, you … Read More
CAN AN LC BE GOVERNED BY BOTH LOCAL LAW AND UCP? QUESTION Dear Mr. Old Man, I appreciate your insights on the following matter: Can a Letter of Credit (LC) be subject to both the laws of a specific country and the Uniform Customs and Practice for Documentary Credits (UCP)? Best regards, Zeev ANSWER Dear Zeev, In my 35 years of experience in trade finance, I have yet to come across … Read More
DRAFTS AND NOMINATED BANK UNDER LETTERS OF CREDIT SUBJECT TO UCP 600 QUESTION Dear Mr. Old Man, I seek your guidance on international trade practices concerning drafts in Letters of Credit (LC) transactions: 1. Under what terms of an LC is the presentation of a draft required? 2. Clarification on the role of a Nominated Bank: If an LC is available with Bank A for negotiation, how should the nominated bank be … Read More
QUESTION REGARDING DOCUMENT PRESENTATION AFTER LC EXPIRY QUESTION Dear Mr. Old Man, I have a question regarding the presentation of documents after the expiration of an LC, as follows: • Date and Place of Expiry: April 18, 2025, in Vietnam • Latest Shipment Date: March 30, 2025 • Estimated Time of Departure: April 21, 2025 Given this schedule, I advised the beneficiary to request an amendment from … Read More
CHATTOGRAM VS CHITTAGONG QUESTION Hi Sir, Short question. LC states “Chattogram seaport” as the place of delivery while BL presented states “Chittagong”. Both names are the same in Bangladeshi. Chattogram = Chittagong. Is this a discrepancy? Best regards, Pocholo Jose Lim — ANSWER Hi, Yes, Chittagong and Chattogram are the same. It is explained that Chittagong is officially called “Chattogram” because “Chattogram” is … Read More
CLARIFICATION ON PAYMENT INSTRUCTIONS IN COVERING SCHEDULE QUESTION Dear Mr. Old Man, I hope you are doing well. I have a small query regarding document presentation and payment instructions. We are the beneficiary bank, acting as the Presenting Bank. The beneficiary submitted documents to us for forwarding to the nominated bank for negotiation, as the LC restricts negotiation to the nominated bank. When forwarding the documents, we … Read More
WHEN A BILL OF LADING MUST INDICATE ACTUAL PORT OF DISCHARGE QUESTION Dear Sir, My letter of credit (LC) specifies the Port of Discharge as “BAHRAIN INTERNATIONAL AIRPORT AND/OR ANY SEAPORT OF BAHRAIN.” For a sea shipment, if we indicate the Port of Discharge as “Bahrain Seaport of Bahrain” or “Bahrain, Bahrain” on the bill of lading, would either of these be considered a discrepancy? Additionally, could you please provide the … Read More
INVOICE NOT CERTIFYING WHAT HAS NOT BEEN SHIPPED QUESTION Dear Sir, LC allows both AIR and SEA shipment. Amount: USD 100,000 Shipment by AIR: USD 40,000 Shipment by SEA: USD 60,000 43P: Partial Shipments: ALLOWED 43T: Transshipments: ALLOWED LC Clause states “INVOICE MUST CERTIFY THAT THE MERCHANDISE ARE IN ACCORDANCE WITH PROFORMA INVOICE NO. XXX DATE XXX FOR USD 40,000.00 AND PROFORMA INVOICE NO. YYY DATED YYY FOR … Read More
WHAT IS THE IMPACT OF EXCLUSION OF UCP 600 SUB-ARTICLE 12b? QUESTION Dear Mr. Old Man, I hope my email finds you doing well I would ask you if the issuing bank wish to exclude article 12 b by credit what is the impact and scenario in this case. Thanks for your reply in advance Regards Firas —- ANSWER Hi, UCP 600 Sub-article 12(b) states that when an issuing bank nominates … Read More
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS? QUESTION Dear Mr. Old Man, I hope you’re doing well. Could you please help clarify the following questions regarding the LC collection procedure between the beneficiary and the presenting bank? Is the beneficiary required to complete any authorization process with the presenting bank when instructing them to forward documents to the issuing bank for payment or to the nominated bank … Read More