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
INCOTERMS 2020 CÓ GÌ MỚI? Nguyễn Hữu Đức Phòng Thương mại Quốc tế (International Chamber of Commerce – ICC) đang soạn thảo bản sửa đổi các Điều kiện Thương mại Quốc tế 2020, gọi tắt là Incoterms 2020. Ngoài một số thay đổi chính liên quan đến các điều kiện thương mại quốc tế, Ủy ban soạn thảo Incoterms 2020 dự định sẽ đơn giản … Read More
WHERE A CERTIFICATE MUST FULFIL ITS FUNCTION QUESTION Dear Mr Old Man, LC requires: Certificate of Quality and Quantity. Certificate of Quality and Quantity is presented showing quality but not quantity of goods. Can we raise the discrepancy “Certificate of Quality and Quantity not showing quantity of goods”? Looking forward to receiving your soon reply. Thank you. LC ——— ANSWER Hi, According to ISBP 745 Q 1, … Read More
WHAT ARE DISADVANTAGES IF THE BENEFICIARY PRESENTS THE DOCUMENTS TO A BANK OTHER THAN THE NOMINATED BANK QUESTION Dear Mr. Old Man, I have some questions for you as follows: LC is available with Bank Y in Country X by negotiation . However, the beneficiary presents the documents to Bank Z in Country X. My questions: 1/ Can the beneficiary present the documents to Bank Z? 2/ What are disadvantages if the beneficiary does not present the … Read More
WARRANTED NO KNOWN OR REPORTED LOSSES (WNKORL) QUESTION Dear Mr. Old Man, Insurance document indicating Issue Date as 20 NOV 2018 (Issue Date) contains a statement: “Warranted no known or reported losses as at 22 NOV 2018 if the Departure Date is earlier than 22 NOV 2018”. Bill of Lading indicates On Board Date as 20 NOV 2018 Can I raise the discrepancy: Insurance document effective from … Read More
WHERE A BILL IS NOT A BILL OF LADING QUESTION Dear Mr Old Man, Please let me know your view on the following case: Field 47A: Partial shipment effected in two and each bill must be presented separately Quantity of goods: 20,000MT The beneficiary presents under the same cover one set of documents including two separate sets of bills of lading: one BL showing quantity of goods shipped 10,000 … Read More
“KOREAN – STYLE” CONFIRMED LETTERS OF CREDIT 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 … Read More
QUESTIONS REGARDING SIGNATURE, NUMBER OF ORIGINALS, GEOGRAPHICAL AREA . 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 … Read More
D/P COLLECTION 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 … Read More
DOES ACCEPTING DISCREPANT DOCUMENTS MEAN THAT A BANK HAS TO ACCEPT SIMILAR DISCREPANCIES ON FUTURE DRAWINGS 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 … Read More