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
AMENDMENT TO CHANGE THE BENEFICIARY QUESTION Hi Mr. Old Man, We need your advice on the following issue: We issued an LC in favour of Beneficiary B. The applicant requests us to issue an amendment to change Beneficiary B into Beneficiary C. Can we issue such an amendment? Is the presentation made by the new beneficiary that complies with the LC deemed to be the … Read More
RIDICULOUS CLAUSES? QUESTION Dear Mr Old Man, Have a good day… Our customer asks us to add below special conditions in the credit: 1) Documents including BL dated prior to the issuance date of this credit are ACCEPTABLE. 2) Short form/black back BL NOT ACCEPTABLE. 3) Documents showing consignee as “TO ORDER’ and notify as “APPLICANT” are ACCEPTABLE. 4) Copy of documents … Read More
REASON FOR EXISTENCE OF SUB-ARTICLE 30 (C) QUESTION Please help me understand the reason for existence of Art.30 c of UCP 600. Is it applicable only when: 1. Credit prohibits partial shipment? 2. Quantity is stated in the credit and that quantity is shipped in full even when stated in quantities like Metric Tons etc? 3. Unit price if stated in the credit is unaltered in the … Read More
FREIGHT FORWARDER’S BILL OF LADING QUESTION Dear Mr. Old Man, I have one question and need your answer please. There are situations where Freight Forwarder Bill of Lading is required instead of Ocean Bill of Lading. Will appreciate if you could mention these situations. Awaiting your answer. Thanks & Regards, Ziyad —– ANSWER Hi, Regarding Freight Forwarder’s Bill of Lading, I would like to note … Read More