CORONAVIRUS AND FORCE MAJEURE Picture obtained from South China Morning Post CORONAVIRUS AND FORCE MAJEURE Trade Services Update magazine is currently hosting a debate on force majeure in connection with the outbreak of coronavirus pneumonia in Wuhan. The situation is as follows: An L/C provides for payment at the nominated bank (NB) against complying documents. The NB is required to forward the documents to … Read More
AI CÓ VỀ QUÊ HƯƠNG GÒ NỔI Ai có về quê hương Gò Nổi Miền đất mới giờ đã lên xanh (*) Chủ Nhật tuần trước đạp xe đạp check-in làng Đo Đo trong Mắt Biếc của nhà văn Nguyễn Nhật Ánh khi đi ngang qua cầu Câu Lâu nhìn thấy Gò Nổi ở giữa sông Thu Bồn, Mr. Old Man đã nghĩ tới Chủ Nhật kế … Read More
ICC HƯỚNG DẪN SỬ DỤNG HỐI PHIẾU TRONG GIAO DỊCH LC Hối phiếu trong giao dịch L/C đã và đang là vấn đề tranh luận không có hồi kết trên các diễn đàn của công đồng những người thực hành thanh toán quốc tế và các chuyên gia tài trợ thương mại rằng L/C có nên yêu cầu xuất trình hối phiếu hay không, ngân hàng/người mở L/C có thể từ … Read More
DRAWEE UNDER LC AVAILABLE BY ACCEPTANCE QUESTION Dear Mr. Old Man I need your kind advice on the below situation: An usance LC of 180 days has been issued by RBL Bank, India to Axis Bank, Dubai (direct RMA) Field 41 D: AXIS BANK, BY ACCEPTANCE Field 42 C: DRAFTS AT 180 DAYS FORM THE DATE OF SHIPMENT Field 42 A: DRAWEE: RBL BANK LTD, MUMBAI, … Read More
FREIGHT PREPAID VS FREIGHT PAYABLE AT BASEL QUESTION Dear Mr. Old Man, The LC requires a full set of original Bills of Lading made out to the order of the issuing bank, marked “FREIGHT PREPAID.” The presented Bill of Lading is marked “FREIGHT PREPAID” and also states “FREIGHT PAYABLE AT BASEL.” May this be considered a discrepancy on the grounds that the Bill of Lading contains conflicting … Read More
SHORT DRAWN AND SHORT SHIPMENT QUESTION Dear Mr. Old Man, I need your opinion on the following case: LC stated: + Quantity: 1000 MT (+/- 10%) + Unit price: USD 100 + Total amount: USD 100,000 (+/- 10%) + Packing: in 5 containers + Partial shipments allowed In May the beneficiary made the 1st presentation for USD 30,000 covering shipment of 300 MT packed in … Read More
MUST THE COURIER RECEIPT INDICATE CONTRACT NUMBER AND DATE ? Intro In LC practice, refusals often arise not because a document is missing, but because banks read documentary requirements in isolation rather than in context. One recurring issue is whether supporting evidence attached to a required document must independently comply with a general condition such as “all documents must show contract number and date”. The following Q&A illustrates why substance … Read More
COPIES OF DOCUMENTS NEED NOT BE SIGNED QUESTION Dear Mr. Old Man, Field 46A: Signed commercial invoice in 3 originals and 3 copies. Field 47A: All documents must be manually signed. I want to know whether copies of invoice must be signed manually. Thank you in advance for your advice. Best regards, T.H —- ANSWER Hi, My quick answer is NO. According to ISBP 745 A31 (b), … Read More
MUST THE ISSUING BANK REIMBURSE WHEN THE NOMINATED BANK PROVIDES THE MISSING DOCUMENT ? QUESTION Dear Mr. Old Man, LC issued by our bank required presentation of Inspection Certificate in 01 original and 02 copies. However, the nominated bank presented only 01 original and 01 copy. We raised the discrepancy “Inspection Certificate: 01 original and 01 copies presented instead of 01 original and 02 copies”. The nominated bank sent our bank another copy of … Read More
DEDUCTION OF DISCREPANCY WITHOUT GIVING NOTICE OF REFUSAL QUESTION Dear Mr. Old Man, On behalf of the beneficiary we made presentation to the issuing bank for payment. The issuing bank paid and sent us an MT910 (Confirmation of Credit) stating that USD100 being discrepancy fee was deducted. The issuing bank had not sent us its notice of refusal. I want to know whether the issuing bank was correct … Read More