AUTHORIZATION FOR DISCOUNT OF DEFERRED PAYMENT UNDERTAKING QUESTION Dear Mr. Old Man, At the request and for account of ABC Co., Ltd (applicant), our bank has issued a deferred payment LC advised through Bank of China. Now at the request of the beneficiary, the applicant asks requests our bank to add the following provision in Field 47A: “WELLS FARGO BANK, N.A IS AUTHORIZED TO DISCOUNT OUR DEFERRED … Read More
SEEKING TO LIFT A COURT ORDER QUESTION Dear Nguyen, We had negotiated documents for USD 100,000 under an LC issued by a bank in Vietnam. It was a usance LC and documents were accepted and maturity date notified to us. A few days before the maturity date, we were informed that the local court had attached USD 30,000 of the above proceeds and thus only USD … Read More
EXAMPLES TO ILLUSTRATE SUB-ARTICLE 30 (b) QUESTION Dear Mr. Old Man, I’ve found your answer concerning sub-article 30 (c) UCP 600 very useful. I urgently need some detailed examples of the same article but for sub-article (b). namely…. provided the credit does not state the quantity in terms of: – a stipulated number of packing units; or – individual items. Pls give some examples (10,000 kg ,100 … Read More
SHIPPING GUARANTEE FOR RELEASE OF CARGOES WITHOUT PRODUCTION OF ORIGINAL BL QUESTION Respected Sir I have a query with regard to release of shipment without BoL , is it possible or what steps do we need to take to facilitate this pl. your thoughts would be much appreciated really . Regards Basskar Verma AISL —————— ANSWER Hi, The carrier would only release the cargoes against a duly endorsed original BL. If … Read More
BEWARE OF LOAN ORIGINATION FEE SCAM QUESTION Dear Mr. Old Man Bên em có một trường hợp khách hàng vay tiền của tổ chức nước ngoài, số tiền 4.000.000USD có Agreement kèm theo. Khách hàng yêu cầu chuyển 1% của 4.000.000USD cho đối tác. Số tiền này được gọi là Loan Origination Fee. Phí này chỉ thỏa thuận trên Email chứ không phải qui định trong … Read More
INCOTERMS IN THE INVOICE QUESTION Dear Mr. Old Man, I appreciate your answer to the following: Situation: L/C stipulates trade term in Field 45A as FOB any Chinese port. B/L presented indicates Port of Loading as Shanghai Port, China. Invoice presented shows FOB any Chinese Port. Question: Is the invoice discrepant? Must it show FOB Shanghai Port to comply with B/L? Thank you. M. … Read More
IS PUERTO RICO PART OF THE UNITED STATES? QUERY LC requires the country of origin to be indicated on documents as USA/Singapore, whereas presented documents show the country of origin as USA and Puerto Rico. Is it accepatble? —————— ANSWER Hi, Interesting question, indeed! It seems to be a discrepancy at first sight. But, in fact, it is acceptable, at least in my own opinion. As document checkers … Read More
DOCUMENTS SENT ON COLLECTION BASIS QUESTION Dear Mr. Old Man, I got your email ID from internet. We have made the shipment; based on Irrevocable Sight L/C. And prepared the documents according to the L/C terms and submitted in our bank. Our correspondent bank couriered the documents to consignee’s bank on collection basis. Today is the 6th day, since the documents have already reached the … Read More