(a small story from the LC trade) Real-life cases sometimes reveal gaps in existing guidance. Situations like the one described in this story were among the factors that eventually led to the inclusion of paragraph (ix) in the Preliminary considerations of ISBP 821. In the days leading up to Tet, the Vietnamese Lunar New Year, people working in letters of …

In day-to-day documentary credit work, seemingly small details—dates on insurance documents or wording in transport clauses—can lead to real examination dilemmas. A reader recently sent three practical questions that many trade finance practitioners have probably encountered at least once. Question Dear Mr. Old Man, Greetings of the day. I hope you are doing well. May I ask for your views …

Intro In LC practice, dates on documents often matter more than the facts behind them. One of the most common traps is assuming that a document must reflect the “real” event date. In reality, banks can only judge what appears on the face of the document, not what happened in the warehouse or at the port. This short Q&A looks …

A Swift sent before expiry does not mean you’ve made a valid claim. In standby business, “documents will follow” can be the most expensive sentence of the year… A banker sent me a case that looks simple — until you read it carefully. And as always in standby LCs, the devil is hiding in one small word: “and”. The Case …

Nghe thì đơn giản, nhưng câu trả lời lại không hề đơn giản chút nào: còn tuỳ. Nói Đà Nẵng thích hợp hơn Sài Gòn để sống khi về hưu là… không sai, mà là đúng quá luôn. Nhưng hỏi “nên chọn ở đâu?” thì rốt cuộc, mỗi người lại có một chữ tuỳ của riêng mình. Có lẽ trong …

Intro Questions surrounding insurance documents remain one of the most frequent sources of discrepancy under documentary credits. One recurring issue is whether an insurance certificate showing the assured as “to order” – and endorsed by a party other than the beneficiary – is acceptable when the credit does not name an assured. The following case highlights how ISBP 821 and …

Introduction In practice, the terms negotiation and discounting are often used interchangeably in letter of credit (LC) transactions. However, under UCP 600, they are not the same. This Q&A clarifies the distinction—especially when an LC is available with a nominated bank by negotiation.  QUESTION Hi, I would like to understand the difference between negotiation and discounting, particularly in cases where …

Intro In SWIFT MT 700, Fields 39A and 39B are often referred to as “tolerance Fields”. Although both relate to the credit amount, they serve different purposes and lead to very different practical outcomes. This Q&A explains the distinction and when each Field is typically used. Question Dear Sir, Good day! I have some doubts on Tolerance Field39A and 39B. …

Intro In LC practice, the term “cable negotiation” is sometimes mentioned by beneficiaries and banks, even though it does not appear in UCP 600. This Q&A clarifies what “cable negotiation” means in practice, how it works, and the benefits and risks involved for each party when discrepant documents are presented. QUESTION Dear Mr. Old Man, My name is HY. I …

Intro  Letters of Credit sometimes contain additional conditions that blur the line between presentation by the beneficiary and document handling between banks. When such clauses are poorly drafted, the question inevitably arises: can an issuing bank turn an internal routing instruction into a discrepancy? The following Q&A addresses one such situation involving Fields 47A and 48. QUESTION Dear Sir, LC …