WHERE THE ISSUING BANK DOES NOT ACCEPT THE WAIVER OF THE APPLICANT AND RETURNS THE DOCUMENTS TO THE PRESENTER QUESTION Hi bro, Could you give me some advice concerning the case where the issuing bank may refuse to honour and return documents even when the applicant agrees to waive the discrepancies? What situations that the issuing bank may do that ? RN ANSWER Dear RM, Thank you for your question. It is rare but it may occur in the following … Read More
PARTIAL PAYMENT QUESTION Dear Mr. Old Man, The presenting bank presented the documents to the issuing bank for payment. However, the documents did not comply. Therefore, the issuing bank refused the documents and advised the applicant of the same. The applicant informed the issuing bank that he would agree to pay half of the claimed amount. Does the issuing bank need to … Read More
INVOICE DOES NOT INDICATE ACTUAL PORT OF DISCHARGE A corner of Hoi An Market, Hoi An Ancient Town, Vietnam QUESTION Dear Mr. Old Man, I need your advice on the following . Is it a discrepancy when commercial didn’t indicate actual port of discharge as per LC (eg. PAFF Hong Kong ) i/o showing statement “Shipped from Busan South Korea to Hong Kong”. Note: Invoice and LOI presented … Read More
CONGENBILL BILL OF LADING TO BE USED WITH CHARTER PARTIES Try your best! Only 500 meters left to the finish line. QUESTION Dear Mr. Old Man, LC requires presentation of ocean bill of lading. A bill of lading is presented showing as follows: ——– CODE NAME “CONGENBILL”. EDITION 1994 BILL OF LADING TO BE USED WITH CHARTER PARTIES ——— Can we raise the discrepancy “Congenbill presented I/O Ocean Bill of … Read More
TOLERANCE REVISITED (2) QUESTION Hi Mr. Old Man, I have a question about the amount L/C tolerance. Could you please give me your advise on the following case: L/C at sight with full amount 252,259 USD. L/C does not show tolerance and partial shipment is prohibited. If we issue the invoice with the amount less than 252,259 USD, then is it a discrepancy … Read More
PARTIAL ACCEPTANCE OF AN AMENDMENT QUESTION Dear Mr. Old Man, I understand that the beneficiary is not allowed to accept part of an amendment. I want to know whether the amendment is deemed to be accepted or rejected when a presentation complies with part of the amendment only. I would appreciate your soon answer. Thank you in advance. Best regards, VAN ——— ANSWER Hi, Your … Read More
INSURANCE POLICY VS INSURANCE CERTIFICATE QUESTION Hi, In reply to a question regarding insurance policy and insurance certificate, you said: “Please note that if the LC requires an insurance certificate, an insurance policy presented is acceptable, but if the LC requires an insurance policy, an insurance certificate presented is not acceptable unless the LC provides that an insurance certificate issued under an open policy is … Read More
WHERE THE PRESENTED DOCUMENTS ARE FOUND TO BE FRAUDULENT Artful water fountain at Ba Na Hills 25 km from my home. QUESTION Dear Mr. Old Man, in case of the documents are compiled in its content but we as a bank found that the documents are fraud and its not real, even though it’s complied. Can we refuse the documents or we just chick the discrepancy in the content … Read More
CAN AN LC BE SUBJECT TO THE LOCAL LAW IN ADDITION TO THE UCP? QUESTION Dear Mr. Old Man, Appreciate your reply to the following: Can LC be subject to the country’s law in addition to UCP? Best regards, Zeev ——- ANSWER Dear Zeev, I must admit that in my 20 years of experience with trade finance I have not yet come across any LC stipulating that it is subject to both the UCP … Read More
WHETHER A PRESENTATION COMPLYING WITH THE ORIGINAL LC BUT NOT TO THE NOT YET ACCEPTED AMENDMENT IS DEEMED TO BE THE BENEFICIARY’S REJECTION OF THE AMENDMENT QUESTION FROM SHEILAR Hi Abrar and Nguyen, Hope you are well. I’ve recently read the consolidated Draft opinions April 2015, and have found TA820 drafted very ambiguously and its analysis seemed equally questionable (see the attachment please). For example, since the background information indicated that the presentation made after the amendment did not comply the the amended credit, I would … Read More