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
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