WHERE LC AVAILABLE BY NEGOTIATION DOES NOT REQUIRE PRESENTATION OF DRAFTS Ferris Wheel in Da Nang – The world’s fourth largest wheel (?) QUESTION Dear Mr. Old Man, LC is available by negotiation but does not include Field 42c (Draft at…). Do we need to present drafts? Thank you. TM ————– ANSWER Hi, It is agreed that LC available by negotiation would require presentation of drafts. However, the LC in this … Read More
LC CANCELLATION; DISCREPANCY FEE QUESTION Dear Mr. Old Man, I have two questions for you: 1) The issuing bank sends an MT 707 advising that the LC is cancelled. The advising bank advises the beneficiary of the same, however, the beneficiary keeps silent as to the amendment and later the beneficiary makes a presentation for negotiation. Can we negotiate the documents? I see … Read More
WHERE MORE THAN ONE SET OF DOCUMENTS IS PRESENTED UNDER ONE COVERING SCHEDULE QUESTION LC allowed partial shipments. The beneficiary effected two shipments and presented to the negotiating bank two separate sets of documents, one set is complying, while the other set is not. The negotiating bank later forwarded to the issuing bank the two sets of documents under one covering schedule which showed the details of each set of documents as … Read More
INVOICE SHOWING A DEDUCTION COVERING ADVANCE PAYMENT, DISCOUNT… QUESTION May I ask you, have you ever sought answer from ICC members who composed ISBP. They must have had reason adding paragraph C7 in ISBP, mustn’t they? LC ——– ANSWER Dear LC, I do not think it’s necessary to ask for ICC members’s explanation why ICC provides in ISBP 745 that an invoice may indicate a deduction covering advance … Read More
DRAFTS DRAWN ON THE CONFIRMING BANK UNDER NEGOTIATION LC QUESTION Dear Mr. Old Man, Is there a possibility that LC is available by negotiation with advising bank who also adds its confirmation, but drafts drawn on issuing bank? Any UCP article/opinion dealing with this matter? Thanks in advance for yr reply Shirki ——- ANSWER Hi, Where LC is available by negotiation with the confirming bank, drafts SHOULD and MUST … Read More
WHETHER THE ISSUING BANK CAN REFUSE THE COMPLIED DOCUMENTS… Da Nang, Vietnam QUESTION Hi, I do need comments from someone who knows about Bangladesh Laws relating to refusal of documents. We have received MT799 from the issuing bank with the content as follows: “PLS BE INFORMED THAT WE ARE OBLIGATED TO FOLLOW THE FOREIGN EXCHANGE POLICY IMPOSED BY OUR CENTRAL BANK AS WELL AS THE PREVAILING LAWS OF OUR … Read More
MUST A BANK ACCEPT SIMILAR DISCREPANCIES OF FUTURE DRAWINGS MUST A BANK ACCEPT SIMILAR DISCREPANCIES OF FUTURE DRAWINGS. Read More
MUST A BANK ACCEPT SIMILAR DISCREPANCIES OF FUTURE DRAWINGS QUESTION Documents covering a partial shipment are presented and accepted under a L/C that prohibits partial shipments. Would you consider their acceptance by the applicant despite this discrepancy as an amendment to the credit allowing other partial shipments presentations? A.S Regards ——— ANSWER Hi, I don’t think so. The fact that a bank accepts a presentation containing discrepanc(ies), with or … Read More
CORRECTION AUTHENTICATION QUESTION Dear Mr. Old Man, I would like to hear your explanation of paragraph A7(a)(ii), which says “…Such authentication is to indicate the name of the entity authenticating the correction either by use of a stamp incorporating its name, or by the addition of the name of the authenticating entity accompanied by its signature or initials”. I wonder whether only … Read More
REQUESTING FOR RETURNING OF THE PRESENTED DOCUMENTS QUESTION Dear Mr. Old Man, The documents have been sent to the issuing bank and the issuing bank has received the documents. I want to know whether the presenter can request the issuing bank to return the documents in order for him to correct some information in the documents. Looking forward to your early reply. Thanks and best regards, BT … Read More