LET’S KICK OFF THE NEW YEAR OF THE DRAGON WITH Q&A RELATED TO ISBP

Mr. Old Man khởi động năm mới Giáp Thìn bằng cách trả lời một loạt câu hỏi liên quan đến quy định của ISBP mà Mr. Old Man nhận được trước Tết 3 ngày. Bình thường Mr. Old Man trả lời ngay nhưng vì bạn ấy gửi một lúc quá nhiều câu hỏi nên đành khất sang năm mới.

HAPPY DRAGON NEW YEAR 2024

QUESTION

Dear Mr. Old Man,

First, I would like to thank you for your enthusiasm and willingness to answer us with so many questions.

I find your answers extremely useful and valuable.

Today, I have some questions related to ISBP 745. I hope you have time to review and share with me your opinion.

It’s really meaning to me.

1. A21 c.” Confirming bank or nominated bank acting on its nomination may restrict the number of acceptance languages as a condition of its engagement in the credit.”

=> I wonder that how Confirming bank/nominated bank can restrict languages in fact. Can they restrict directly to presenter?

2. C14: “When no quantity of goods is stated in the credit, and partial shipment are prohibited, an invoice issued for an amount up to 5% less than the credit amount will be considered to cover the full quantity and not a partial shipment.”

=> So when quantity of goods is stated in L/C, article C14 will not apply?

3. F14: Address and contact details of applicant as part of consignee or notify party, not to conflict with L/C.

=> How about address and contact details of Issuing bank as part of consignee or notify party, whether it can conflict with L/C.

4. G25 c. Why this article does not mention Detention cost as additional cost to freight.

5. K4: When an agent or proxy signs insurance document, does it need to name?

Thank you for your help.

Best regards.

KT

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ANSWER

Hi,

Thank you for your questions, but it is noted that next time you should send one question at a time as I do not have time to answer many questions at a time.

Anyway, here are my answers to your questions:

1.    The confirming bank or the nominated bank may state in the LC advice sent to the beneficiary the number of acceptable languages as a condition of its engagement in the LC .

2.    Paragraph C14 in ISBP 745 now becomes Paragraph C15 in ISBP 821. C15 does not apply when the quantity of goods is stated in the LC. Sub-article 30 (b) UCP 600 may apply, that is to say, a tolerance not to exceed 5% more  or 5% less that the quantity of the goods is allowed, provided the LC does not state the quantity in terms of a stipulated number of packing units or individual items and the total amount of the drawings does not exceed the LC amount.

3.    If the LC states the address and contact details of the issuing bank as part of the consignee or notify party, the transport document is to indicate the name of the issuing bank but need not indicate its address or contact details. However, when the address and contact details of the issuing bank as part of the consignee or notify party, it is not to conflict with that stated in the LC (based on sub-article 14 (d) UCP 600).

4.    The party responsible for keeping the container beyond the free time for loading/unloading is generally the one pays detention charges. This could be the shipper, consignee, or any other party involved in the logistics chain. Therefore, detention charges cannot be treated as an additional cost to the freight cost. It can be paid for by the party who keeps the container beyond the free time.

5.    According to K2 (b) ISBP 821, when an insurance document appears to have been signed by an agent or proxy, for or on behalf of the insurance company or underwriter, THE NAME OF THE AGENT OR PROXY NEED NOT BE STATED.

Happy Dragon New Year!

Best wishes,

Mr. Old Man