ASSIGNMENT OF PROCEEDS QUESTION Dear Mr. Old Man, 1) Can the beneficiary present the documents to the nominated bank with instruction that payment is to be paid to another party? 2) If yes, how can we incorporate this clause into the LC? Thank you. Regards, BD ——— ANSWER Hi, 1) Yes. The beneficiary can assign any proceeds to which it may be entitled … Read More
QUESTIONS REGARDING SIGNATURE, NUMBER OF ORIGINALS, GEOGRAPHICAL AREA QUESTION Dear Mr. Old Man, Please help me with the following: 1) LC requires “Signed commercial invoice”, but the invoice presented is signed with a stamp bearing the name of the beneficiary, e.g., ABC Co., Ltd. Can the stamp be treated as a signature? 2) LC does not require insurance policy to indicate number of originals. 2.1 Is it acceptable … Read More
CAN DRAFTS BE DRAWN ON THE CONFIRMING BANK ? QUESTION Dear Mr. Old Man, I would appreciate your answer to my following questions: Is the drawee in drafts always the issuing bank? Can drafts be drawn on the confirming bank? Thank you. TL ________ ANSWER Hi, 1) Quite often, but not always. It is agreed that the drawee on drafts would be the issuing bank. However, a draft may … Read More
DRAFT AT 120 DAYS AFTER NEGOTIATING DATE QUESTION Dear Mr. Old Man, We received an UPAS LC as follows: Issuing bank: KB Korea L/C amount: USD33,581.35 Date and expiry: 151014 at negotiating bank L/C available with any bank by negotiation Drafts at 120 days after nego date Reimbursing bank: KB Ho Chi Minh City (SWIFT CODE: ………) 47A : Additional Conditions T/T reimbursement is not allowed When you … Read More
DESCRIPTION OF GOODS ON INVOICE QUESTION Dear Mr. Old Man, I would like to as your opinion on the following case: – Field 45A of a LC requires description of goods as follows: + Commodity: Fabrics . Contract number A, amount: USD50,000.00 . Contract number B, amount: USD25,000.00 – The documents presented including an invoice as follows: + Commodity: Fabrics + Contract number A, B. … Read More
Q&A REGARDING REVOLVING LETTERS OF CREDIT QUESTION Dear Mr. Old Man, Thank you so much for precious advice posted on your blog, which helped me a lot to pass CDCS exam in April 2015 with grade of 83%. Up to now, when I have difficulties in solving problems relating to LC, my first action is to google it with phrase “x problem” + “Mr. Old Man”. … Read More
BIKING UP HAI VAN PASS, EXPLORING CUA KHEM CAPE – A WONDERFUL BIKING EXPERIENCE Last Saturday 12 September I biked up Hai Van Pass and explored Cua Khem Cape (Vietnam). It was a wonderful biking trip! Source: BIKING UP HAI VAN PASS, EXPLORING CUA KHEM CAPE – A WONDERFUL BIKING EXPERIENCE Read More
BIKING UP HAI VAN PASS, EXPLORING CUA KHEM CAPE – A WONDERFUL BIKING EXPERIENCE Last Saturday 12 September I biked up Hai Van Pass and explored Cua Khem Cape (Vietnam). It was a wonderful biking trip! Read More
WHETHER “LC EXPIRED” IS A DISCREPANCY AND WHETHER THE ISSUING BANK MUST GIVE NOTICE OF REFUSAL QUESTION Hi Mr. Old Man, I still have a question today. One our import L/C expired. Documents presented with a Cover letter of Beneficiary’s Bank mentioned that L/C and noted ” Documents may only be released if at the same time you irrevocably undertake to remit us the proceeds” An opinion said that, the Ben. Bank made this presentation to collection form and the … Read More
THE HIGHER THE BETTER? QUESTION Dear Mr. Old Man, I come across the following case: Field 45A: DRIED GRAINS WITH SOLUBLES Specification: PROFAT 36 PCT MINIMUM Field 47A: ALLOWANCE FOR PROFAT IS NOT MORE THAN 2 PCT. Presented documents show: PROFAT 39.1 PCT Can we raise the discrepancy “Profat exceeding allowance specified in Field 47A? Thank you! DDD ——- ANSWER Hi, Profat, which means … Read More