QUESTION Dear Mr. Old Man, We appreciate your urgent help please! LC issued by our bank stipulates: ———————————————— 41D: Available with ANY BANK BY NEGOTIATION 42C: Draft at SIGHT FOR 100 PCT OF INVOICE VALUE 42A:Drawee (OUR BANK SWIFT CODE) 46A: Documents required Signed commercial invoice in triplicate. 3/3 set of Originals of clean ‘Shipped on board’ ocean Bill of …

QUESTION Dear Mr. Old Man: ISBP745 D7 “When a credit requires shipment to commence from a port, i.e., when the first leg of the journey, as required by the credit, is by sea, a multimodal transport document is to indicate a dated on board notation, and in this event paragraph E6 (b-d) will also apply.” I don’t understand why should …

QUESTION Dear Mr.  Old Man, 1) Can the beneficiary present the documents to the nominated bank with instruction that payment is to be paid to another party? 2) If yes, how can we incorporate this clause into the LC? Thank you. Regards, BD ——— ANSWER Hi, 1) Yes. The beneficiary can assign any proceeds to which it may be entitled …

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 …

QUESTION Dear Mr. Old Man, LC does not allow partial shipments. Documents were presented to the issuing bank in two separate covering schedules. The first set reached the issuing bank’s counter on 5 October, 2015 and the second set on 8 October, 2015.  However, the bills of lading in the two sets showed goods were shipped on the same vessel …

QUESTION Mr. Old Man, We are exporting some goods to Nigeria. Importer Bank is First Bank of Nigeria, confirming bank is Standard Chartered Bank, Mumbai and advising bank is State Bank of India, Nagpur, India. In our LC there is a clause, wherein through our advising bank, we have to submit 2/3 original Shipped on Board OCEAN BILL OF LADING …

QUESTION Dear Mr. Old Man, We will appreciate your prompt answer to the following questions: Question 1: – LC stipulates: Insurance covered by the beneficiary. Insurance certificate in assignable form and blank endorsed  covering all risks  for 110pct of invoice value showing claim payable by settling Agent with full address in Vietnam in invoice currency in full set. – Presented Insurance …

QUESTION Dear Mr. Old Man, We have known you through your enthusiastic and expert answer for problem relate to L/C and we really admire your specialist knowledge. Now, I still have had a question and I hope you help me clarify it: “Which is the last day the issuing bank must honour a complying document presented under at sight L/C and not break UCP …

QUESTION Dear Mr. Old Man, I’m trying to find a clause in UCP 600 or any related source showing that in transferable LC, transferring bank only settle the payment claim to second beneficiary upon their receipt of settlement from issuing bank. Could you give me advice for this case. Why don’t ICC translate the case to UCP? I urge you …

QUESTION Dear Mr. Old Man, I have the following case: The beneficiary presented the documents including invoice to our bank for negotiation. In addition to the goods required in the LC, the invoice also indicates additional goods and unit price with a note “no commercial values”, and the total invoice amount does not include the value of these additional goods. …