CANCELLATION FEES QUESTION Dear Mr. Old Man, LC issued ABC Bank states that amendment and confirmation fees are for account of the beneficiary. Some days ago we received from ABC Bank a request for cancellation of the LC and a claim for USD230.00 being their cancelation fees and cable charges. We advised the beneficiary of the same but the beneficiary confirmed having … Read More
ANOTHER QUERY ON REVOLVING LC QUESTION WHAT ARE THE POINTS ONE HAS TO KEEP IN MIND, WHILE OPENING REVOLVING LC? Bhatia J ————————- ANSWER Dear Bhatia, There are some definitions of revolving letter of credit, one of which is defined as follows: A revolving letter of credit (RLC) is a special letter of credit type which is structured in a way so that it revolves … Read More
TO ORDER BILL OF LADING AND ENDORSEMENT QUERY FROM POPBABI Sent To: Mr. Old Man B/L If L/C require B/L to order endorsed of Issuing Bank , it is synonymous with requirement on B/L to be endorsed by Shipper ? At that time, Consignee on B/L must be one of each cases: – to order – to order of shipper – blank – to bearer ——————————————– COMMENT … Read More
SURRENDERED BILL OF LADING QUERY FROM LINH DAN Thank you for answering my rather… annoying question the other day! I have another question. Recently, a customer submitted documents for payment by TTR, but the B/L was neither an original nor marked as a copy. On the B/L, there was also a note stating: “NO ORIGINAL B/L ISSUED. ORIGINAL B/L SURRENDERED IN SINGAPORE.” I don’t … Read More
ADDING CONFIRMATION TO AN LC ALREADY CONFIRMED QUESTION Hello, I need some help. Is it possible for another bank to add confirmation to an LC that has already been confirmed? In other words, can an LC have two open confirmations from two separate banks? Thank you in advance. Kind regards, Emsequeira ———– ANSWER Dear Emsequeira, In trade finance, almost anything is possible—provided the parties involved are willing … Read More