EXPIRED LC QUESTION Hi Mr. Old Man, We have the following case relating to expired L/C. Our bank sent the issuing bank the documents under the L/C available with the issuing bank by acceptance. As the L/C expired, the issuing bank sent us a message informing that it treated the documents as a collection. Two weeks later, the issuing bank sent us … Read More
BILL OF LADING ENDORSED BY AGENT OF THE SHIPPER QUESTION Dear Mr. Old Man, Please help me with the following question: B/L shows as follows: Shipper: Company 1 A/C Company 2 Consignee: To Order Endorsement made by Company 2 What does A/C mean? Does Company 2 have right to endorse the bill of lading? I’m looking forward to receiving your reply soon. Thank you very much. Best Regards, QN … Read More
CHARTER PARTY BILL OF LADING INDICATES RANGE OF PORTS AS PORT OF DISCHARGE QUESTION Dear Mr. Old Man, LC requires presentation of full set of original clean on board ocean bills of lading… and also allows presentation of charter party bills of lading. Field 44F (Port of Discharge): PHU MY PORT OR CAI MEP PORT OR HO CHI MINH PORT A shipped on charter party presented shows Port of Discharge as PHU MY … Read More
WHERE GOODS COVERED BY MORE THAN ONE BILL OF LADING QUESTION Dear Mr. Old Man, Happy new year Mr. Old Man, Related to Goods covered by more than Bill of lading . Beneficiary presented Bill of lading with one container “1x40rh” with bill of lading no:SGN0535366” and Bill of lading showed”PART LOAD CONTAINER(S) COVERED BY BLS: SGN053042, SGN0535366 As per E28 ISBP745, Such Bill of lading is acceptable Please give … Read More
ADVANCE PAYMENT AND ADVANCE PAYMENT GUARANTEE QUESTION Dear Mr. Old Man, A sale contract for USD150,000 states the payment terms as follows: 30% by T/T in advance 70% by D/P The buyer is afraid that it is risky for him to pay in advance as the seller may not effect shipment while he has received the advance payment. What should the buyer do to avoid the … Read More
TRANSFERRING BANK’S LIABILTY UNDER TRANSFERRED LC QUESTION Dear Mr. Old Man 1. We are the 2nd beneficiary in LC and the actual suppliers/shippers of the cargo. 2. Our bank is based in Malaysia. 3. Transferable LC was opened from a Chinese Bank by Applicant based in China 4. First beneficiary’s address in LC is of Hongkong as 1st beneficiary is based in Hong Kong. 5. Applicant … Read More
Questions regarding bill of lading and other transport documents QUESTION Hello Mr. Old Man, First let me thank you for your website. Here are some questions that have been bothering me for a while: 1) The bill of lading can be “an order” or “named”, for what reason, is it endorsed when it is “an order” while it is not endorsed in the case of a nominative bill of … Read More
Documents sent in one lot instead of two lots QUESTION Dear Mr Old Man, I have a question that needs your opinion. L/C required documents to be sent to the issuing bank in two lots but to save the mail costs the negotiating bank sent in one lot only. The issuing bank raised the discrepancy “Documents sent in one lot instead of two lots”. Is the discrepancy valid? Best … Read More
Hold for Value – What Does It Mean? QUESTION Dear Mr. Old Man, I sometimes come across the phrase “hold for value” used in guarantees. I have read some materials about it, but I do not understand its purpose. Can you please share your view on this issue? Thank you. ——— ANSWER Hi, The phrase “Hold for value request” or “extend or hold for value” or “pay or … Read More
Sanctions Clause in Letters of Credit QUESTION Dear Mr. Old Man We have shipment of bulk liquid cargo. We got the charter party bill of lading with loading port as South Korea.We sent the documents to our bank our bank checked the documents and sent the complying documents to issuing bank. After five banking days passed, the issuing bank sent below swift message to our bank: … Read More