A CASE REGARDING CUMULATIVE REVOLVING LC QUESTION Hey Mr. Old Man, Could you please help me in clarifying the answer of the following question: A credit is issued for the amount of USD15,000 and is stated to revolve monthly on an automatic and cumulative basis. The credit has a 9 months validity period. The following drawings are made in the first 5 months: January – USD12,500 … Read More
EXPIRED L/C QUESTION Hi Mr. Old Man, We have the following case relating to expired L/C. Our bank sent the issuing bank the documents under the L/C available with the issuing bank by acceptance. As the L/C expired, the issuing bank sent us a message informing that it treated the documents as a collection. Two weeks later, the issuing bank sent us … Read More
SUB ARTICLE 9 (d)_ADVISING OF CREDITS AND AMENDMENTS QUESTION Hi Mr. Old Man, We issue a LC through Bank A (first advising bank) stating Bank B as second advising bank in field 57A. We now have RMA with Bank B. Our customer requests us to issue amendments and advise them directly to Bank B. We are going to send an authenticated message to Bank A to ask for the … Read More
DECIMAL PLACES Dear Mr. Old Man, Good afternoon, today I have a short question about amount insured. According to para. K13, ISBP 745, “There is no requirement for insurance coverage to be calculated to more than two decimal places”. So, if amount of cover calculated is USD 100,000.156789, the amount should be shown in the insurance document is USD 100,000.16 or only … Read More
FIELD 34B – NEW DOCUMENTARY CREDIT AMOUNT AFTER AMENDMENT Hoi An Ancient City, Vietnam QUESTION Dear the excellent expert! Please guide us for the question relating to MT707- the field 34b contains the currency code and total amount of the documentary credit after the amendment, disregarding any drawings. Which should we understand ‘disregarding any drawings’? Whether does it exclude paid drawing (at sight) and accepted drawing (usance)? Could you … Read More
WHETHER ARTICLE 35 IS APPLICABLE? Hai Van Pass, Da Nang, Vietnam QUESTION Dear Mr. Old Man, The covering schedule shows 3/3 original bills of lading but the issuing bank finds only 2 original bills of lading presented. Can the issuing bank raise the discrepancy “2 instead of 3 original bills of lading presented”? Can the presenter reject the discrepancy based on Article 35? Your prompt … Read More
CERTIFICATE OF ORIGIN WITHOUT INDICATING INVOICE NUMBER QUESTION Dear Mr. Old Man, Please kindly help us for two cases: Invoice issued by beneficiary A and shows the invoice no. HANB dated 11/06/2016 C/O issued Commerce Chamber, shows the shipper/consignor B and invoice no. HANP dated 11/06/2016. Invoice issued by beneficiary A and shows the invoice no. HANB dated 11/06/2016 C/O which issued Commerce Chamber does not show … Read More
DOES PRESENTING BANK HAVE THE RIGHTS TO CLAIM FROM ISSUING BANK? (Quoted from DCPro Discussion Forum 27 – 30 June, 2016) QUESTION Hi Beneficiary presented docs to us despite LC is restricted to another bank. We, acting as a presenting bank, sent the docs to issuing bank which was considered as clean and received the acceptance advice from issuing bank. Can we understand that this acceptance advice override the restriction terms … Read More
WHAT IS THE MEANING OF DEMAND (Quoted from DCPro Discussion Forum, 14 – 17 June, 2016) A street in Hoi An Ancient Town, Vietnam QUESTION If the beneficiary’s demand is presented to the issuing bank at 10.00 AM on 14 June (under a guanartee issued subject to local law/not any ICC rules) does the issuing bank is obligated to make payment on the same day? If … Read More
WHY IS TRAILER INCLUDED IN ARTICLE 20 UCP 600? Da Nang, Vietnam QUESTION Dear Mr. Old Man, Could you please share your idea as to the below context? UCP 600 Article 20 states that: A bill of lading indicating that transshipment will or may take place is acceptable, even if the credit prohibits transshipment, if the goods have been shipped in a container, “TRAILER” or lash barge as evidenced … Read More