For your information about the practice of adding confirmation to L/Cs at KEB, please find attached below Mr. Old Man’s discussion with Thomas Soong from KEB. Hope it’s informative and useful. ——– Dear Huu Duc, At present, when we confirm an LC, we have a side agreement with the beneficiary to enable us to exercise recourse if payment is not …

QUESTION Dear Mr. Old Man, Please help me with the following: 1) LC requires “Signed commercial invoice”, but the invoice presented is signed with a stamp bearing the name of the beneficiary, e.g., ABC Co., Ltd. Can the stamp be treated as a signature? 2) LC does not require insurance policy to indicate number of originals. 2.1 Is it acceptable …

QUESTION Sir, I want to know, if the documents on DP term are sent with clear instruction to release only against Payment. If the collecting bank has released all shipping documents along with endorsed in favor of consignee without collecting payment (good faith), what are the obligations and responsibilities of the collecting bank ? Can the remitting bank claim from …

QUESTION Dear Mr. Old Man, We need your professional opinion on the following issue: LC issued by our bank stipulates goods are shipped in 2 shipments. The beneficiary effected the 1st shipment and presented the documents to our bank via Bank N for reimbursement. We checked and found the bill of lading to contain the discrepancy “shipped on board notation …

QUESTION Hi Mr. Old Man, We need your advice on the following issue: We issued an LC in favour of Beneficiary B. The applicant requests us to issue an amendment to change Beneficiary B into Beneficiary C. Can we issue such an amendment? Is the presentation made by the new beneficiary that complies with the LC deemed to be the …

QUESTION Dear Mr Old Man, Have a good day… Our customer asks us to add below special conditions in the credit: 1) Documents including BL dated prior to the issuance date of this credit are ACCEPTABLE. 2) Short form/black back BL NOT ACCEPTABLE. 3) Documents showing consignee as “TO ORDER’ and notify as “APPLICANT” are ACCEPTABLE. 4) Copy of documents …

QUESTION Please help me understand the reason for existence of Art.30 c of UCP 600. Is it applicable only when: 1. Credit prohibits partial shipment? 2. Quantity is stated in the credit and that quantity is shipped in full even when stated in quantities like Metric Tons etc? 3. Unit price if stated in the credit is unaltered in the …

QUESTION Dear Mr. Old Man, I have one question and need your answer please. There are situations where Freight Forwarder Bill of Lading is required instead of Ocean Bill of Lading. Will appreciate if you could mention these situations. Awaiting your answer. Thanks & Regards, Ziyad —– ANSWER Hi, Regarding Freight Forwarder’s Bill of Lading, I would like to note …

QUESTION Dear Mr. Old Man, May I ask a few questions. 1) Why do issuing banks allow TT reimbursement? because I know China banks do not. 2) Where TT reimbursement is allowed and a reimbursing bank is nominated in LC, I understand it’s not common for the nominated bank to be informed upon LC issuance, am I right? In any …

QUESTION Credit stated that the “Insurance Policy endorsed in blank, for full CIF value plus at least 10% stipulating Claims payable at destination covering ……” . Note : Port of discharge : X port, India. My questions: 1) Does it mean that Insurance documents need to state “with claims payable at destination…….” ? 2) How about If the insurance documents …