THE PAYMENT TERM OF 90 DAYS AFTER THE ARRIVAL DATE FCIB’S QUERY RELAYED BY KIM CHRISTENSEN TO LCM TRADE SERVICE UPDATES’ COUNTRY CORRESPONDENTS FOR COMMENTS Dear FCIB Members: A fellow member has a question regarding Payment Terms – Automotive Aftermarket Industry. I am interested if there is a "best practice" for determining payment terms, specifically to vendors in China. If terms are FOB China; 90 day terms. (I realize this … Read More
TRANSFERRING BANK'S LIABILITY UNDER TRANSFERRED LC QUERY FROM MOON Hi Mr. Old man, Could you give me a word of advice in this case? Details as follows: A transferable L/C is issued by bank A in favor of Ben 1 and Ben 1 transfer this LC to Ben 2 by MT720 through bank B (the bank is nominated as transfering bank in original LC). Ben 2 … Read More
THE MAIN DIFFERENCE BETWEEN BL AND AWB QUERY FROM NGUYEN THANH HAI Kính gửi Anh Đức! Nhờ anh hướng dẫn và giải thích giùm tôi về Vận đơn hàng không với.Vận đơn hàng không có gì giống và khác nhau so với Vận đơn đường biển? Xin trân thành cám ơn Anh rất nhiều! —————————————–MR. OLD MAN'S COMMENT Chào Thanh Hải, Tôi có thể trả lời ngay … Read More
TYPES OF CREDIT QUERY FROM NEVILLE D COSTA Dear Sir I have the following questions with regards to Letter of credit Q.1. I would like to know if in case of Usance letter of credit is it possible for the bank to open the Letter of credit "Available by Negotiation." If it possible please let me know what is difference it has with … Read More
TOLERANCE REVISITED QUERYFrom: NGUYEN HANH HIEN Sent: Tue 9/22/2009 9:41 AMTo: Nguyen Huu Duc (DNG)Subject: Re: Where a tolerance is not applicable to quantity of goods Dear Old Man, We are very interested in reading your cases. Thank you very much for your explanation. By the way, please give us your opinion on the following case although it seems similar to Bo … Read More
TRANSIT CLAUSE IN CARGO INSURANCE POLICY QUERY FROM PVN, Bác Đức ơi, Bảo hiểm này xuất trình chung cho 2 LC mà mail trước cháu gửi bác. Ngày giao hàng thực tế là 18/12, ngày phát hành bảo hiểm là 30/12. Ngoài ra không chỉ thêm ngày bắt đầu hiệu lực của bảo hiểm. LC yêu cầu bảo hiểm cover from warehouse to warehouse. Tuy nhiên … Read More
THE ISSUING BANK'S RIGHT TO RECOURSE QUERY FROM HARRY First and foremost, thank you very much for your response. Based on my research thus far it seems that there has been little academic commentary on the topic. A few situations which I fail to understand are as follows: a) The applicant asks the issuing bank (IB) to issue a LC in favour of a beneficiary. The … Read More
SUPERIMPOSED STAMP ON BL QUERYFrom: NGUYEN THU THUYSent: Mon 6/22/2009 4:01 PMTo: Nguyen Huu Duc (DNG)Subject: Ref: B/L Kinh chao anh Duc. Em da nhieu lan lam phien anh. Va lan nay em lai co mot tinh huong ve ky phat B/L ma thuc su em con rat phan van lieu co nen bat loi hay khong. Kinh mong anh giup do va tu … Read More
TO PAY OR NOT TO PAY IF SHIPMENT IS NOT EFFECTED IN FULL QUERY FROM NICO PARISPartial shipments I am a trainee currently dealing with my first LC matter and have what I hope is a straight-forward query. Under the LC, the sales contract and the UCP rules partial shipments are allowed. Partial drawings also. If the beneficiary of the LC in which the description of goods is 5410 MT (+/-10%) ships only … Read More
THE IRREVOCABILITY OF THE CREDIT Mr. Old Man exchanging views with Ravi, Frammi and Armagedo on LC Irrevocability QUERY FROM RAVI we have opened a irrevocable letter of credit to our exporter in Australia from State Bank of India. We have contracted 10 FCls at the price of 360 USD and now the prices jumped nearly 150 USD PMT. It is the intention of our … Read More