HOW TO GIVE NOTICE OF REFUSAL TO THE BENEFICIARY WHO HAS PRESENTED THE DOCUMENTS DIRECTLY TO THE ISSUING BANK? QUESTION Dear Mr. Old Man, I understand that sub-article 6 (a) UCP 600 allows the beneficiary to present the documents directly to the issuing bank. However, I want to know how the issuing bank give the notice of refusal to the beneficiary in case the presented documents contain discrepancies. Thank you for your advice Best regards, L.L —– ANSWER Hi, … Read More
DRAFTS UNDER D/A COLLECTIONS; NON-DOCUMENTARY CONDITION; ISSUED RETROACTIVE; GUARANTEE VS CONTRACT Dear Mr. Old Man, Could you give me your opinions about controversy issues that I meet during processing documents? COLLECTION: We have received under a D/A collection a set of documents including drafts at 60 DAYS AFTER SIGHT. Do we calculate the maturity date from the day we receive the above documents for collection or from the day … Read More
EARLY PRESENTATION QUESTION Dear Mr Old Man, I am Dang from Vietnam Prosperity bank. I know that you usually give valuable oppion for difficult cases from bank in Vietnam. Today, our bank faces with a difficult case and I would like to seek your valuable idea: L/C required: Latest date of shipment: 10 Aug 20… Period for presentation: After 21days from the … Read More
WHAT DOES D/A AT 30 DAYS SIGHT MEAN? QUESTION Hi Mr. Old Man, We’ve received D/A documents at 30 days sight. How to calculate the due date in this case? 30 days from the document arrival date or 30 days from the drawee’s acceptance date? Our practice is that when the D/A documents arrive at our bank, we send the drawee the notice of document arrival at once … Read More
PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but … Read More
WHETHER THE BENEFICIARY CAN NEGOTIATE THE DOCUMENTS WITH THE 1ST ADVISING BANK QUESTION Hi Sir, Can 1st advising bank contact the beneficiary and negotiate documents directly even there is a 2nd advising bank indicated in the LC? Regards, dotcom ———– ANSWER Hi, Where the L/C is available with any bank by negotiation, the beneficiary may present the documents to any bank including the first advising bank for negotiation. Where the L/C … Read More
ISSUING BANK’S LIABILITY UNDER THE SHIPPING GUARANTEE QUESTION Hi Mr. Old Man, Could you please give your comments on the following: 1) The issuing bank has issued a shipping guarantee to enable the applicant to take delivery of the goods without presentation of original bills of lading. If the original bills of lading made to the order of the issuing bank are lost in transit, what are … Read More
BENEFICIARY’S ADDRESS IN INVOICE Q&A quoted from DCPro Discussion Forum 24 August, 2017 QUESTION Is there any requirement (as per UCP 600) to indicate the beneficiary address in the commercial invoice? Shahed ——— ANSWER Hi, Under international banking practice, it is expected that an invoice will include the name and the address of the beneficiary. However, there is no requirement in UCP 600 for … Read More
WHERE ALL ORIGINAL BILLS OF LADING MUST BE PRESENTED QUESTION A credit requires the presentation of ‘3 / 3’ (that is, three of three) original multimodal transport documents. The presented document indicates that four originals have been issued. The beneficiary has presented three originals. The nominated bank has refused the documents for the absence of one original multimodal transport document. The beneficiary is arguing that the credit required only … Read More
BILL OF LADING SUBJECT TO CHARTER PARTY NOT ACCEPTABLE QUESTION Can you please explain me meaning of below: Bill of Lading indicating that it is subject to charter party is not acceptable. Sam ——— ANSWER Hi, The Bill of Lading that contains an indication “issued pursuant to charter party dated…”, “freight payable as per charter party” or “issued subject to charter party” or bears a title “Charter Party Bill … Read More