Mr Old Man PARTIAL SHIPMENTS UNDER SUB-ARTICLE 31 (B) QUESTION Dear Mr. Old Man, LC does not allow partial shipments. Documents were presented to the issuing bank in two separate covering schedules. The first set reached the issuing bank’s counter on 5 O… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Address Updates in Export Documents Following Administrative Reorganization 1 Jul 2025 QUESTION Dear Sir, Good day and hope you’re doing well! Today marks a rather special occasion as our country prepares to enter a new phase with significant changes ahead. On this occasion, I have an interesting question that I hope you could kindly take some time to help clarify. According to Resolution No. 1682/NQ-UBTVQH15 regarding the reorganization of administrative units, …
CLARIFICATION ON CRM DOCUMENT EXAMINATION STANDARDS 1 Jul 2025 QUESTION Dear Mr. Old Man, Thank you so much for your swift response — your explanation has clarified the previous issue for us. We are now facing another matter and would greatly appreciate your guidance: As the Confirming Bank, we received a set of documents that appear to be compliant, including a CMR document printed on white paper with an …
MONKEY MOUNTAIN CHALLENGE 2025: BẤT CHẤP MƯA GIÓ, TRÁI TIM VẪN HƯỚNG VỀ ĐỈNH CAO 30 Jun 2025 June News Bảy ngày lang thang trên đất Hàn Quốc, cộng thêm những cơn mưa lớn dai dẳng giữa mùa hè như muốn thử thách lòng người, đã khiến nhịp độ leo núi của Trần Mai chậm lại so với năm tháng đầu năm đầy sung mãn. Thế nhưng, dù thời tiết chẳng chiều lòng người, Trần Mai vẫn khép …
Phiếm bàn từ “xụt bệ” với Chat GPT 29 Jun 2025 Sáng cuối tuần, cà phê ở quán quen, anh bạn già vừa ngồi xuống đã buông câu than: – “Cái xe đạp bữa ni xụt bệ quá, đi cà giựt cà giựt!” Nghe tới chữ “xụt bệ”, Mr. Old Man hơi khựng lại. Lâu lắm rồi mới thấy từ này bật ra từ miệng một người bạn… rặt giọng Quảng …
Field 46A vs. 47A in LCs: Are All Documents Treated Equally? 29 Jun 2025 QUESTION Dear Mr. Old Man, I’ve heard of your name for years and now would like to trouble you with a question, hoping you might spare a moment for some expert advice. Are documents required under fields 46A and 47A of an LC treated equally? For example: The issuing bank and applicant agree to state the requirement for a Phytosanitary …
Careful, You Might Fall for Mr. Chat GPT 28 Jun 2025 (Especially if you’re the type who gets a little lonely and loves a polite, soft-spoken conversationalist) This morning, over coffee, I found myself chatting with the gentlemanly Chat GPT about the word “xục bệ”. I’ve heard it now and then, but a quick Google search turned up nothing. So I turned to Chat GPT for help. After a while of …
Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or Kaohsiung are involved. ICC has clarified part of this, but not everything. Here’s how to understand it from an LC practice perspective. QUESTION Dear Mr. Old Man, As far as … Read More
Do Confirming Banks Care About Third-Party References? Intro In trade finance, one of the most important principles under UCP 600 is that a credit is independent from the underlying contract of sale or any other agreement on which it may be based. Yet, in practice, many credits do contain references to external contracts. A reader recently asked whether such references affect a confirming bank’s willingness to add … Read More
Independent Undertakings under Sub-Article 7(c) UCP 600 Intro One area that often causes confusion in practice is the relationship between the issuing bank’s reimbursement obligation to a nominated bank and its payment obligation to the beneficiary. Sub-article 7(c) of UCP 600 deals with this precise point. A reader recently asked for clarification, and here’s how I explained it. QUESTION Dear Mr. Old Man, Please clarify sub-article 7(c) … Read More
Why Do Confirming Banks Prefer “Available with Confirming Bank”? Why do confirming banks so often require the LC to be available with them, even though UCP 600 allows confirmation when the LC is available with another nominated bank? In this Q&A, Mr. Old Man explains the practical reasons behind this practice and highlights a hidden risk for beneficiaries when the confirming bank is located outside their own country. … Read More
When “Open-Ended” Guarantees Aren’t So Open After All ICC Opinion TA 952 (still under discussion) raises an interesting issue: two open-ended guarantees issued in 2007, subject to URDG 458 and French law. The underlying obligations are confirmed as fulfilled, but the beneficiary no longer exists. The questions are whether URDG 758 has any effect and, more importantly, how such guarantees can be cancelled. This reminded me of a … Read More
Shipment Advice by Fax or Email – Does It Comply? Intro Banks often face questions where documents show multiple modes of communication—fax, email, courier—and applicants or beneficiaries wonder which one prevails. Priya brings us a classic case: LC requires Shipment Advice by email, but the document mentions fax as well. Let’s untangle this. QUESTION Dear Mr. Old Man, LC requires Shipment Advice to be sent via email to the insurance … Read More
Can an Invoice Include Handling Charges? Intro Invoices are always a hot spot in LC presentations. Readers often ask me whether certain “extras” on an invoice might cause problems under UCP 600. Recently, Priya sent me a good one: handling charges. Let’s see how this plays out. QUESTION Dear Mr. Old Man, I came across an invoice where the goods are kitchen equipment. The invoice gives … Read More
Can a Beneficiary Be the Charterer Under FOB? Intro FOB is one of the most familiar trade terms in Incoterms® 2020. By the book, it’s always the buyer who arranges and pays for the vessel. But trade practice often colors outside the lines. A reader recently asked whether it’s possible for the beneficiary (seller) to be the charterer under an FOB sale. Let’s unpack this scenario. _________ Question … Read More
Confirmed or Unconfirmed? Decoding MT 710 and Confirmation Fields Intro In trade finance practice, LC confirmations can sometimes get tricky—especially when MT 710 is involved, and the fields seem to give mixed signals. One reader sent in a great case about an MT 710 with “adding our confirmation” in Field 40B, but “without” in Field 49. Let’s walk through the logic step by step. ________ Question Dear Mr. Old … Read More
MT 202 or MT 103 – A Case Study You Won’t Find in Textbooks In trade finance, life is rarely as straightforward as the manuals suggest. Real transactions often bring up situations that don’t quite fit the “standard” rules. One such puzzle is deciding whether an LC payment should go out via MT202 (bank-to-bank transfer) or MT103 (customer credit). The following Q&A, based on a real-life case in Vietnam, illustrates how to untangle this … Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or Kaohsiung are involved. ICC has clarified part of this, but not everything. Here’s how to understand it from an LC practice perspective. QUESTION Dear Mr. Old Man, As far as … Read More
Do Confirming Banks Care About Third-Party References? Intro In trade finance, one of the most important principles under UCP 600 is that a credit is independent from the underlying contract of sale or any other agreement on which it may be based. Yet, in practice, many credits do contain references to external contracts. A reader recently asked whether such references affect a confirming bank’s willingness to add … Read More
Independent Undertakings under Sub-Article 7(c) UCP 600 Intro One area that often causes confusion in practice is the relationship between the issuing bank’s reimbursement obligation to a nominated bank and its payment obligation to the beneficiary. Sub-article 7(c) of UCP 600 deals with this precise point. A reader recently asked for clarification, and here’s how I explained it. QUESTION Dear Mr. Old Man, Please clarify sub-article 7(c) … Read More
Why Do Confirming Banks Prefer “Available with Confirming Bank”? Why do confirming banks so often require the LC to be available with them, even though UCP 600 allows confirmation when the LC is available with another nominated bank? In this Q&A, Mr. Old Man explains the practical reasons behind this practice and highlights a hidden risk for beneficiaries when the confirming bank is located outside their own country. … Read More
When “Open-Ended” Guarantees Aren’t So Open After All ICC Opinion TA 952 (still under discussion) raises an interesting issue: two open-ended guarantees issued in 2007, subject to URDG 458 and French law. The underlying obligations are confirmed as fulfilled, but the beneficiary no longer exists. The questions are whether URDG 758 has any effect and, more importantly, how such guarantees can be cancelled. This reminded me of a … Read More
Shipment Advice by Fax or Email – Does It Comply? Intro Banks often face questions where documents show multiple modes of communication—fax, email, courier—and applicants or beneficiaries wonder which one prevails. Priya brings us a classic case: LC requires Shipment Advice by email, but the document mentions fax as well. Let’s untangle this. QUESTION Dear Mr. Old Man, LC requires Shipment Advice to be sent via email to the insurance … Read More
Can an Invoice Include Handling Charges? Intro Invoices are always a hot spot in LC presentations. Readers often ask me whether certain “extras” on an invoice might cause problems under UCP 600. Recently, Priya sent me a good one: handling charges. Let’s see how this plays out. QUESTION Dear Mr. Old Man, I came across an invoice where the goods are kitchen equipment. The invoice gives … Read More
Can a Beneficiary Be the Charterer Under FOB? Intro FOB is one of the most familiar trade terms in Incoterms® 2020. By the book, it’s always the buyer who arranges and pays for the vessel. But trade practice often colors outside the lines. A reader recently asked whether it’s possible for the beneficiary (seller) to be the charterer under an FOB sale. Let’s unpack this scenario. _________ Question … Read More
Confirmed or Unconfirmed? Decoding MT 710 and Confirmation Fields Intro In trade finance practice, LC confirmations can sometimes get tricky—especially when MT 710 is involved, and the fields seem to give mixed signals. One reader sent in a great case about an MT 710 with “adding our confirmation” in Field 40B, but “without” in Field 49. Let’s walk through the logic step by step. ________ Question Dear Mr. Old … Read More
MT 202 or MT 103 – A Case Study You Won’t Find in Textbooks In trade finance, life is rarely as straightforward as the manuals suggest. Real transactions often bring up situations that don’t quite fit the “standard” rules. One such puzzle is deciding whether an LC payment should go out via MT202 (bank-to-bank transfer) or MT103 (customer credit). The following Q&A, based on a real-life case in Vietnam, illustrates how to untangle this … Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Chinese Port? Hong Kong, Macao, or Kaohsiung? 22 Sep 2025 Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or Kaohsiung are involved. ICC has clarified part of this, but not everything. Here’s how to understand it from an LC practice perspective. QUESTION Dear Mr. Old Man, As far as …
Do Confirming Banks Care About Third-Party References? 20 Sep 2025 Intro In trade finance, one of the most important principles under UCP 600 is that a credit is independent from the underlying contract of sale or any other agreement on which it may be based. Yet, in practice, many credits do contain references to external contracts. A reader recently asked whether such references affect a confirming bank’s willingness to add …
Independent Undertakings under Sub-Article 7(c) UCP 600 19 Sep 2025 Intro One area that often causes confusion in practice is the relationship between the issuing bank’s reimbursement obligation to a nominated bank and its payment obligation to the beneficiary. Sub-article 7(c) of UCP 600 deals with this precise point. A reader recently asked for clarification, and here’s how I explained it. QUESTION Dear Mr. Old Man, Please clarify sub-article 7(c) …
Why Do Confirming Banks Prefer “Available with Confirming Bank”? 19 Sep 2025 Why do confirming banks so often require the LC to be available with them, even though UCP 600 allows confirmation when the LC is available with another nominated bank? In this Q&A, Mr. Old Man explains the practical reasons behind this practice and highlights a hidden risk for beneficiaries when the confirming bank is located outside their own country. …
When “Open-Ended” Guarantees Aren’t So Open After All 18 Sep 2025 ICC Opinion TA 952 (still under discussion) raises an interesting issue: two open-ended guarantees issued in 2007, subject to URDG 458 and French law. The underlying obligations are confirmed as fulfilled, but the beneficiary no longer exists. The questions are whether URDG 758 has any effect and, more importantly, how such guarantees can be cancelled. This reminded me of a …
Shipment Advice by Fax or Email – Does It Comply? 16 Sep 2025 Intro Banks often face questions where documents show multiple modes of communication—fax, email, courier—and applicants or beneficiaries wonder which one prevails. Priya brings us a classic case: LC requires Shipment Advice by email, but the document mentions fax as well. Let’s untangle this. QUESTION Dear Mr. Old Man, LC requires Shipment Advice to be sent via email to the insurance …
Can an Invoice Include Handling Charges? 15 Sep 2025 Intro Invoices are always a hot spot in LC presentations. Readers often ask me whether certain “extras” on an invoice might cause problems under UCP 600. Recently, Priya sent me a good one: handling charges. Let’s see how this plays out. QUESTION Dear Mr. Old Man, I came across an invoice where the goods are kitchen equipment. The invoice gives …
Can a Beneficiary Be the Charterer Under FOB? 15 Sep 2025 Intro FOB is one of the most familiar trade terms in Incoterms® 2020. By the book, it’s always the buyer who arranges and pays for the vessel. But trade practice often colors outside the lines. A reader recently asked whether it’s possible for the beneficiary (seller) to be the charterer under an FOB sale. Let’s unpack this scenario. _________ Question …
Confirmed or Unconfirmed? Decoding MT 710 and Confirmation Fields 15 Sep 2025 Intro In trade finance practice, LC confirmations can sometimes get tricky—especially when MT 710 is involved, and the fields seem to give mixed signals. One reader sent in a great case about an MT 710 with “adding our confirmation” in Field 40B, but “without” in Field 49. Let’s walk through the logic step by step. ________ Question Dear Mr. Old …
MT 202 or MT 103 – A Case Study You Won’t Find in Textbooks 13 Sep 2025 In trade finance, life is rarely as straightforward as the manuals suggest. Real transactions often bring up situations that don’t quite fit the “standard” rules. One such puzzle is deciding whether an LC payment should go out via MT202 (bank-to-bank transfer) or MT103 (customer credit). The following Q&A, based on a real-life case in Vietnam, illustrates how to untangle this …
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More
Mr Old Man Chinese Port? Hong Kong, Macao, or Kaohsiung? Intro Letters of credit sometimes use broad geographical terms like “any Chinese port.” That sounds simple, but in practice it raises tricky questions—especially when ports like Hong Kong, Macao, or K… Read More