EARLY PRESENTATION REVISITED The last slope to the peak of Hai Van Pass QUESTION Dear Mr. Old Man, LC states: Field 48 (Period of Presentation): Documents presented later than 21 days after shipment date but within L/C validity acceptable. Field 31D (Date and Place of Expiry): 150420 IN SINGAPORE Presented bills of lading shows shipment date as 04/03/2015 while the covering schedule shows issuance date as 11/03/2015 … Read More
“LATE PRESENTATION” REVISITED A corner of my garden QUESTION Dear Mr. Old Man, Your comment on the following issue is appreciated: The documents were presented to the issuing bank which refused the documents stating the discrepancy “Late presentation”. The negotiating bank sent the issuing bank a message confirming that the documents were presented within LC validity. Which bank is correct? Thank you. PT … Read More
NEGOTIATION OF DOCUMENTS PRESENTED UNDER LC AVAILABLE WITH THE ISSUING BANK BY DEFERRED PAYMENT Riding up to the peak of Hai Van Pass QUESTION Dear Mr. Old Man, The beneficiary presents to our bank the documents under an LC available with the issuing bank by deferred payment and asks us to negotiate the documents. What are the risks if we agree to negotiate? Thank you. Best regards, PMB ————- ANSWER Hi, Where the LC … Read More
WHERE LC REQUIRES PRESENTATION OF COPY HEALTH CERTIFICATE Map of Vietnam QUESTION Dear Mr. Old Man, Please help us with the following case: LC stated: ONE COPY HEALTH CERTIFICATE ISSUED BY GOVERNMENTAL AUTHORITY STATING: (A) THE FISHMEAL WAS PRODUCED IN A PROCESSING PLANTS DEDICATED ONLY TO FISH MEAL PRODUCTION WHERE NO MATERIAL OF ANIMAL ORIGIN OTHER THAN FISH PROTEIN IS BEING USED. (B) THE FISH MEAL WAS TRANSPORTED IN A … Read More
ADDITIONAL DISCREPANCIES Da Nang Beach, Vietnam QUESTION Dear Mr. Old Man, Thanks a lot for valuable views and comment. I asked you about correction and representation of documents, but now I have faced with a new situation that requires your opinion. The situation is as follows: We, the issuing bank, checked the documents and found a discrepancy on the invoice. We gave … Read More
DISCOUNT OF EXPORT DOCUMENTS PRIOR TO ISSUING BANK’S ACCEPTANCE (Q&A quoted from DCPro UCP 600 Discussion Forum 23 – 27 Jan 2015) QUESTION Bank A issues a usance L/C (say 90 days after B/L date) available by negotiation/acceptance with any bank with draft drawn on the issuing bank (reimbursement to be effected by the issuing bank at maturity against a complying presentation). The L/C does not ask for confirmation … Read More
WHERE THE NOMINATED BANK DELAYS IN FORWARDING THE DOCUMENTS TO THE ISSUING BANK QUESTION Is the issuing bank bound to honor in such case where the negotiating bank states in the covering schedule that the documents are complying which they forward to issuing bank 10 days after 5 banking days ? ——— ANSWER Hi, There are no articles in UCP 600 dealing with the time period within which the nominated bank must forward … Read More
LATE PRESENTATION OR NOT? QUESTION Dear Mr. Old Man, A deferred payment LC stipulates as follows: F31D (Date and Place of Expiry): 150105 GERMANY F48 (Period for Presentation): WITHIN 21 DAYS FROM BILL OF LADING DATE The documents presented by the nominated bank in Germany shows the covering schedule date as 05 January, 2015 and the bill of lading date as 10 December, 2014. … Read More
DOCUMENTS DELIVERED ON A BANK HOLIDAY Hoi An Ancient Town QUESTION Dear Mr. Old Man, We have a real case that needs your urgent help. Our bank closed for 2015 New Year’s Holiday from Thursday 1 January to Sunday 4 January, 2015. On Friday, 2 January, 2015 DHL delivered one set of documents to our bank and a security guard signed the receipt of the … Read More
LATE DELIVERY PENALTY CLAUSE A corner of Hoi An Ancient Town Market QUESTION Dear Mr. Old Man, We need your comment on the following case: A credit issued by our bank states in Field 47A as follows: “Late shipment is acceptable but subject to a penalty of 2.5% for every 7 days (odd days less than seven days is considered as seven days). The … Read More