LC NUMBER and DATE QUESTION Hi Can a bank contest a discrepancy claim based on ICC banking commission opinion? LC required a Railway Receipt to mention LC no and date ( In clause 47 of MT 700). However, it was not mentioned, and the issuing bank raised a discrepancy. Nominated bank has contested the said discrepancy citing “ICC Banking Commission Opinion R289” Is this … Read More
NON-NEGOTIABLE SEA WAYBILL QUESTION Dear Mr. Old Man, Sea waybill has been asked in LC instead of negotiable bill of lading. Now when the original documents are received, submitted sea waybill is presented in photocopy. When enquired about the same, the supplier is replying that Quote Since SWB will be surrendered at the time of issue, Sea Waybill will never come in Original. Unquote … Read More
FBEP/AP và DBEP/AP QUESTION Dear Anh Đức, Em nhờ anh chia sẻ vể FBEP/AP và DBEP/AP Em cám ơn. TMP —— ANSWER Dear P. FBEP/AP (Foreign Bill of Exchange Purchased/Authority to Purchase) là dịch vụ/nghiệp vụ ngân hàng tài trợ hay ứng trước tiền cho khách hàng là nhà xuất khẩu bằng cách thương lượng, mua hoặc chiết khấu bộ chứng từ hàng … Read More
WHICH PARTY IS LIABLE FOR PAYMENT? QUESTION Dear Sir I hope this mail finds you well. I am Juwel from Bangladesh and have been working in the trade finance department of a bank. I am really delighted to mention that I am one of your biggest fan and follower of you and your blog. Your blog on different subject helped me a lot in learning trade and … Read More
WITHOUT DELAY IN URC 522 QUESTION Dear Mr. Old Man, Kindly assist in case of D/A shipments (90 Days after BL date), in how many days, the presenting bank should determine the presentation are complying or not. According to URC 522, art. 1(C), if a bank elects, for any reason, not to handle a collection or any related instructions received by it, it must advise … Read More
WHERE LC INCORPORATES CNI DELLIVERY TERM QUESTION Dear Sir, We get lots of import LC requests asking us to incorporate Incoterms CNI (Cost and Insurance on beneficiary). This term is not recognized by ICC under Incoterms 2020. Can we open LC incorporating CNI Incoterms? And can we raise discrepancy if goods are not insured by the beneficiary? As always, thank you for your cooperation. Regards, Siddhartha Sharma … Read More
PERIOD FOR PRESENTATION QUESTION Hello Sir, I read your articles online and your answers to some questions regarding the L/Cs. I have a question: If the shipment transit time is short, like 4-5 days and field 48 says 21 days to present the documents from the date of the BoL, we lose free 7 days’ time of port to release the shipment and … Read More
FRAUD OR NOT? QUESTION Chào anh Đức, Em đọc được blog của anh giải đáp nhiều điều hay về TTQT. Em có trường hợp vay Quỹ Tài chính số tiền 5 triệu USD. Ngân hàng MUFJ chuyển số tiền đó bằng điện Swift MT 103 cho người hưởng là công ty có TK tại Ngân hàng BIDV thông qua Ngân hàng trung gian … Read More
STANDBY LETTERS OF CREDIT INSTEAD OF BANK GUARANTEES QUESTION Dear Mr. NGUYEN, (MR. OLD MAN) HOPE THIS EMAIL FINDS YOU WELL, SAFE, and HEALTH. I contact you after reading all over your blog at www.mroldman.net about every article especially, related to article “Back to Back LC”, and would like to ask your help to advise under circumstances: I am a trader, receive DLC MT700 after our 2% PB issuing to … Read More
WHERE BL IS REQUIRED TO SHOW BOTH APPLICANT AND ISSUING BANK QUESTION Dear Mr. Oldman, Good day, I’m Stefan a banker from Switzerland who just entered the beautiful world of L/C’s. I want to also add that I’m a big fan of yours and I often check your blog when I look for “answers”. I’m contacting you because I have a very interesting case of study: We (advising/negotiating bank), received an … Read More