INSURANCE COVERED BY THE BENEFICIARY; CERTIFICATE IS TO BE SIGNED 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 … Read More
WHETHER THE ISSUING BANK MUST HONOUR WITHIN FIVE BANKING DAYS 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 … Read More
OBLIGATIONS AND LIABILITIES OF A TRANSFERRING BANK UNDER A TRANSFERRED LC 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 … Read More
WHERE INVOICE INDICATES GOODS NOT CALLED FOR IN THE LC 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. … Read More
WHERE ORIGINAL BILLS OF LADING ARE LOST IN TRANSIT WHERE ORIGINAL BILLS OF LADING ARE LOST IN TRANSIT QUESTION Dear Mr. Old Man! We need your advice regarding documents (including original bills of lading made out to the order of our bank) lost in transit. Our bank issued LC in favor of the beneficiary in Indonesia. As the goods arrived at the port of discharge before the documents, our … Read More
WHERE ORIGINAL BILLS OF LADING ARE LOST IN TRANSIT QUESTION WHERE ORIGINAL BILLS OF LADING ARE LOST IN TRANSIT QUESTION Dear Mr. Old Man! We need your advice regarding documents (including original bills of lading made out to the order of our bank) lost in transit. Our bank issued LC in favor of the beneficiary in Indonesia. As the goods arrived at the port of discharge before the documents, … Read More
WHERE LC CONTAINS THE CLAUSE “NO THIRD PARTY DOCUMENTS WILL BE ACCEPTED” QUESTION Mr. Old Man, It will be helpful if you could help me out regarding Transferable LC. I have got Transferable LC with Clause that ” No Third Party Documents will be accepted” and Buyer’ s bank has refused to amend this detail. But the B/L and Certificate of Origin and all will have third party as exporter. Please can … Read More
WHETHER A NOMINATED BANK CAN NEGOTIATE DRAFTS DRAWN ON ITSELF QUESTION Dear Mr. Old Man, You are kindly requested to explain to me paragraph B10 ISBP 745, which says: “When a credit is available by negotiation with a nominated bank or any bank, the draft is to be drawn on a bank other than the nominated bank”. I understand if the LC is available with a nominated bank, e.g., Bank … Read More
WHERE A VIRGULE (/) IS USED QUESTION Hi Mr. Old Man, I have a question that needs your comment. LC stipulates: B/L MUST SHOW GROSS/NET WEIGHT PER CONTAINER B/L presented only shows GROSS WEIGHT. The issuing bank raises the discrepancy “B/L DOES NOT SHOW NET WEIGHT PER CONTAINER” Is the discrepancy valid? Thank you! TV ————– ANSWER Hi, The discrepancy is not valid. A virgule (i.e., … Read More
PARTIAL PAYMENT ON DISCREPANT DOCUMENTS Can an issuing bank pay only part of a discrepant presentation based on the applicant’s instructions? In documentary credit practice, situations sometimes arise where the applicant is willing to accept discrepant documents, but only on condition that the beneficiary agrees to a reduction in payment. This usually happens when market conditions have changed and the importer no longer wishes to … Read More