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
WHETHER AN INVOICE MUST INCLUDE DETAILS REQUIRED TO BE SHOWN ON THE CERTIFICATE OF ORIGIN QUESTION Good Day Mr. Old Man, First, congratulations for the new website! It is very nice and we are happy for that. I have one question regarding commercial invoice and certificate of origin. I understand that to obtain a certificate of origin certified by Chamber of Commerce, the beneficiary must provide Chamber of Commerce with a commercial invoice indicating where … Read More
Beware of MT103/23 – Fraud? QUESTION Dear Mr. Old Man, I stumbled on one of your blogs and fortunately, I found your email address. I am writing you today hoping to find a definite answer to the question: Does SWIFT MT 103/23 exist at all? Such a question is relevant because as I tried to Google it, a number of sources suggest that the SWIFT … Read More
Consignee on documents other than C/O (updated) QUESTION Dear Mr. Old Man! It is understood that where a bill of lading is made out to the order of the issuing bank, the certificate of origin may indicate the L/C applicant as consignee. I wonder whether this is also applicable to other documents like insurance policy, invoice, packing list… . Thank you. ————– ANSWER Hi, According to ISBP … Read More
SBLC and Fraud QUESTION Dạ chào anh ạ. Em có đọc bài trả lời về STANDBY LETTER OF CREDIT dated August 19, 2014 của anh, rất là hữu ích ạ. (https://nhducdng.wordpress.com/2014/08/19/standby-letter-of-credit/) Anh vui lòng cho hỏi: nếu ngân hàng mở SBLC nhận được chứng từ xuất trình phù hợp là phải thanh toán, và “ngân hàng không xác định sự vi phạm đã … Read More
WHERE A MMTD INCLUDES AN INTENDED VESSEL QUESTION If the MMTD includes an intended vessel, should it have an on board notation showing the name of the actual vessel? Firas —– ANSWER Hi, It should be noted that article 19 does not require an on board notation as a default position for most of the time. However, in line with ICC Opinion R. 641 (TA.650rev), a dated … Read More