PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but … Read More
WHETHER THE BENEFICIARY CAN NEGOTIATE THE DOCUMENTS WITH THE 1ST ADVISING BANK QUESTION Hi Sir, Can 1st advising bank contact the beneficiary and negotiate documents directly even there is a 2nd advising bank indicated in the LC? Regards, dotcom ———– ANSWER Hi, Where the L/C is available with any bank by negotiation, the beneficiary may present the documents to any bank including the first advising bank for negotiation. Where the L/C … Read More
ISSUING BANK’S LIABILITY UNDER THE SHIPPING GUARANTEE QUESTION Hi Mr. Old Man, Could you please give your comments on the following: 1) The issuing bank has issued a shipping guarantee to enable the applicant to take delivery of the goods without presentation of original bills of lading. If the original bills of lading made to the order of the issuing bank are lost in transit, what are … Read More
BENEFICIARY’S ADDRESS IN INVOICE Q&A quoted from DCPro Discussion Forum 24 August, 2017 QUESTION Is there any requirement (as per UCP 600) to indicate the beneficiary address in the commercial invoice? Shahed ——— ANSWER Hi, Under international banking practice, it is expected that an invoice will include the name and the address of the beneficiary. However, there is no requirement in UCP 600 for … Read More
WHERE ALL ORIGINAL BILLS OF LADING MUST BE PRESENTED QUESTION A credit requires the presentation of ‘3 / 3’ (that is, three of three) original multimodal transport documents. The presented document indicates that four originals have been issued. The beneficiary has presented three originals. The nominated bank has refused the documents for the absence of one original multimodal transport document. The beneficiary is arguing that the credit required only … Read More
BILL OF LADING SUBJECT TO CHARTER PARTY NOT ACCEPTABLE QUESTION Can you please explain me meaning of below: Bill of Lading indicating that it is subject to charter party is not acceptable. Sam ——— ANSWER Hi, The Bill of Lading that contains an indication “issued pursuant to charter party dated…”, “freight payable as per charter party” or “issued subject to charter party” or bears a title “Charter Party Bill … Read More
WHERE C/O HAS NO SIGNATURE BUT A REFERENCE TO A WEBSITE FOR AUTHENTICATION QUESTION Dear Mr. Old Man, I would be grateful if you could give me advice in this case: The C/O presented under Import LC is not signed but refer to clause: “For certifying authority use only VERIFY URL:HTTP://WWW.CO-CCPIT.ORG” So this clause satisfy the requirement of signature or not? I look forward to hearing from you soon, Ha Thu Hang ———– … Read More
HOW TO PRESENT THE DOCUMENTS WHERE LC IS AVAILABLE WITH A NOMINATED BANK OUTSIDE THE BENEFICIARY’S COUNTRY This place is called God’s Well. I came here with some of my biking friends with our bikes on the shoulders. Dare not come back here again! QUESTION Dear Mr Old Man, We received an L/C with the details as follows: Sender: ABC Bank Singapore Receiver: XYZ Bank Vietnam Expiry date: 1/1/2017 in Vietnam Available with ABC Bank Singapore by negotiation. … Read More
WHERE THE DUE DATE IS A NON-BANKING DAY South Hai Van Pass QUESTION Usance bill payment falls on 13th December i.e. Tuesday and it is a holiday for the country of making the payment, but not a holiday for the currency of payment (Ex: Currency of payment is USD and that day is not a New york holiday). When we should pay? Is it on 12th or 14th? … Read More
WHERE DOCUMENTS UNDER LC ARE PRESENTED FOR COLLECTION UNDER URC 522 QUESTION I need your help to comment on below: We have received (LC) documents under schedule indicating that this presentation is subject to URC 522. Documents to be released against payment. I would like to know the reason for sending documents for collection under URC 422 instead of sending them in accordance with advised LC. UCP is more suitable for … Read More