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 Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
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 …
Documents Presented Directly to the Issuing Bank – What Happens Next? 13 Sep 2025 Intro One common question in documentary credit practice is whether a beneficiary can bypass the nominated bank and present documents directly to the issuing bank. This situation often arises close to expiry dates, during holidays, or in domestic LCs. But once the documents land on the issuing bank’s desk, another set of questions follow: how does the issuing bank handle …
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance document must expressly state “All Risks” when the credit requires such coverage. In the following case, the LC called for insurance covering “Institute All Risks”, while the presented insurance document referred to “Institute … Read More
Does an Insurance Document Need to State “Effective Date” Exactly? One of the most common issues in the examination of insurance documents under letters of credit arises when the insurance policy or certificate is issued after the shipment date. ISBP 821 requires the insurance document to evidence that coverage was effective no later than the shipment date. But does the document need to use the exact wording “Effective Date”? What … Read More
From Negotiation to Payment: What’s Behind the Confirming Bank’s Request? Not all L/C amendments are about shipment dates, amounts, or documents. Sometimes, a confirming bank requests changes that appear quite technical, such as changing a credit from “available by negotiation” to “available by payment” or moving the place of expiry from one country to another. Are such amendments merely operational preferences, or do they have legal and risk implications for … Read More
Nomophobia – A New Word, A Familiar Feeling This morning, while enjoying a cup of coffee and scrolling through Facebook, Mr. Old Man came across a word he had never seen before: Nomophobia. The word refers to the fear or anxiety of being without a mobile phone or being unable to use it. When Mr. Old Man was studying English some decades ago, this word did not exist … Read More
Nomophobia – Hội chứng sợ không có điện thoại bên mình Hôm nay lướt Facebook, Mr. Old Man bắt gặp một từ tiếng Anh khá lạ: nomophobia. Ví dụ minh họa đi kèm rất dễ hiểu: “Many teenagers experience nomophobia when they forget their phones at home.” Tạm dịch: “Nhiều bạn trẻ trải qua hội chứng sợ không có điện thoại khi để quên điện thoại ở nhà.” Nomophobia được hiểu … Read More
Tắm Vitamin D (phần 2): Thay đổi quan điểm Hồi đầu tháng 5, Mr. Old Man từng viết bài “Tắm Vitamin D”, kể lại cảnh buổi sáng ở bãi biển Thanh Khê có nhiều cô chú lớn tuổi vùi mình dưới cát, nằm phơi nắng để “nạp Vitamin D” – theo cách nói vui của các cô chú là để tăng sức đề kháng, giảm đau lưng, đau chân, … Read More
Can an Issuing Bank Advise an LC Directly to the Beneficiary? One of the fundamental safeguards in documentary credits is the authentication process performed by an advising bank. But what happens if an issuing bank sends the LC directly to the beneficiary without involving an advising bank? Is this permissible under UCP 600, and what risks should the parties consider? Let’s look at a question from Gerson Mário. Question Dear Mr. … Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading? In international trade, many disputes arise not because parties misunderstand UCP 600, but because they mix up legal requirements with commercial practices. A reader recently asked Mr. Old Man about two common concerns in timber imports from Africa: whether the L/C expiry date must be linked to the shipping transit time, and whether removing the word “Clean” from “Clean On … Read More
Does Field 39A Cover Quantity Tolerance? A reader recently sent Mr. Old Man an interesting question about quantity tolerance under an L/C. The issue sounds simple at first glance, but in practice it often creates confusion between sales contract terms, the wording of the credit, and the application of UCP 600 Article 30. Here is the question and discussion. Question Dear Mr. Old Man, I would … Read More
CAN A COMMERCIAL INVOICE EXCEED THE LC AMOUNT? One area that occasionally causes confusion under UCP 600 is the relationship between Article 18(b) and Article 30(a). Many practitioners assume that a commercial invoice may exceed the LC amount only where the credit expressly allows a tolerance, or where the words “about” or “approximately” are used in connection with the credit amount under Article 30(a). However, Article 18(b) provides … Read More
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance document must expressly state “All Risks” when the credit requires such coverage. In the following case, the LC called for insurance covering “Institute All Risks”, while the presented insurance document referred to “Institute … Read More
Does an Insurance Document Need to State “Effective Date” Exactly? One of the most common issues in the examination of insurance documents under letters of credit arises when the insurance policy or certificate is issued after the shipment date. ISBP 821 requires the insurance document to evidence that coverage was effective no later than the shipment date. But does the document need to use the exact wording “Effective Date”? What … Read More
From Negotiation to Payment: What’s Behind the Confirming Bank’s Request? Not all L/C amendments are about shipment dates, amounts, or documents. Sometimes, a confirming bank requests changes that appear quite technical, such as changing a credit from “available by negotiation” to “available by payment” or moving the place of expiry from one country to another. Are such amendments merely operational preferences, or do they have legal and risk implications for … Read More
Nomophobia – A New Word, A Familiar Feeling This morning, while enjoying a cup of coffee and scrolling through Facebook, Mr. Old Man came across a word he had never seen before: Nomophobia. The word refers to the fear or anxiety of being without a mobile phone or being unable to use it. When Mr. Old Man was studying English some decades ago, this word did not exist … Read More
Nomophobia – Hội chứng sợ không có điện thoại bên mình Hôm nay lướt Facebook, Mr. Old Man bắt gặp một từ tiếng Anh khá lạ: nomophobia. Ví dụ minh họa đi kèm rất dễ hiểu: “Many teenagers experience nomophobia when they forget their phones at home.” Tạm dịch: “Nhiều bạn trẻ trải qua hội chứng sợ không có điện thoại khi để quên điện thoại ở nhà.” Nomophobia được hiểu … Read More
Tắm Vitamin D (phần 2): Thay đổi quan điểm Hồi đầu tháng 5, Mr. Old Man từng viết bài “Tắm Vitamin D”, kể lại cảnh buổi sáng ở bãi biển Thanh Khê có nhiều cô chú lớn tuổi vùi mình dưới cát, nằm phơi nắng để “nạp Vitamin D” – theo cách nói vui của các cô chú là để tăng sức đề kháng, giảm đau lưng, đau chân, … Read More
Can an Issuing Bank Advise an LC Directly to the Beneficiary? One of the fundamental safeguards in documentary credits is the authentication process performed by an advising bank. But what happens if an issuing bank sends the LC directly to the beneficiary without involving an advising bank? Is this permissible under UCP 600, and what risks should the parties consider? Let’s look at a question from Gerson Mário. Question Dear Mr. … Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading? In international trade, many disputes arise not because parties misunderstand UCP 600, but because they mix up legal requirements with commercial practices. A reader recently asked Mr. Old Man about two common concerns in timber imports from Africa: whether the L/C expiry date must be linked to the shipping transit time, and whether removing the word “Clean” from “Clean On … Read More
Does Field 39A Cover Quantity Tolerance? A reader recently sent Mr. Old Man an interesting question about quantity tolerance under an L/C. The issue sounds simple at first glance, but in practice it often creates confusion between sales contract terms, the wording of the credit, and the application of UCP 600 Article 30. Here is the question and discussion. Question Dear Mr. Old Man, I would … Read More
CAN A COMMERCIAL INVOICE EXCEED THE LC AMOUNT? One area that occasionally causes confusion under UCP 600 is the relationship between Article 18(b) and Article 30(a). Many practitioners assume that a commercial invoice may exceed the LC amount only where the credit expressly allows a tolerance, or where the words “about” or “approximately” are used in connection with the credit amount under Article 30(a). However, Article 18(b) provides … Read More
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? 7 Jun 2026 Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance document must expressly state “All Risks” when the credit requires such coverage. In the following case, the LC called for insurance covering “Institute All Risks”, while the presented insurance document referred to “Institute …
Does an Insurance Document Need to State “Effective Date” Exactly? 7 Jun 2026 One of the most common issues in the examination of insurance documents under letters of credit arises when the insurance policy or certificate is issued after the shipment date. ISBP 821 requires the insurance document to evidence that coverage was effective no later than the shipment date. But does the document need to use the exact wording “Effective Date”? What …
From Negotiation to Payment: What’s Behind the Confirming Bank’s Request? 6 Jun 2026 Not all L/C amendments are about shipment dates, amounts, or documents. Sometimes, a confirming bank requests changes that appear quite technical, such as changing a credit from “available by negotiation” to “available by payment” or moving the place of expiry from one country to another. Are such amendments merely operational preferences, or do they have legal and risk implications for …
Nomophobia – A New Word, A Familiar Feeling 5 Jun 2026 This morning, while enjoying a cup of coffee and scrolling through Facebook, Mr. Old Man came across a word he had never seen before: Nomophobia. The word refers to the fear or anxiety of being without a mobile phone or being unable to use it. When Mr. Old Man was studying English some decades ago, this word did not exist …
Nomophobia – Hội chứng sợ không có điện thoại bên mình 5 Jun 2026 Hôm nay lướt Facebook, Mr. Old Man bắt gặp một từ tiếng Anh khá lạ: nomophobia. Ví dụ minh họa đi kèm rất dễ hiểu: “Many teenagers experience nomophobia when they forget their phones at home.” Tạm dịch: “Nhiều bạn trẻ trải qua hội chứng sợ không có điện thoại khi để quên điện thoại ở nhà.” Nomophobia được hiểu …
Tắm Vitamin D (phần 2): Thay đổi quan điểm 5 Jun 2026 Hồi đầu tháng 5, Mr. Old Man từng viết bài “Tắm Vitamin D”, kể lại cảnh buổi sáng ở bãi biển Thanh Khê có nhiều cô chú lớn tuổi vùi mình dưới cát, nằm phơi nắng để “nạp Vitamin D” – theo cách nói vui của các cô chú là để tăng sức đề kháng, giảm đau lưng, đau chân, …
Can an Issuing Bank Advise an LC Directly to the Beneficiary? 4 Jun 2026 One of the fundamental safeguards in documentary credits is the authentication process performed by an advising bank. But what happens if an issuing bank sends the LC directly to the beneficiary without involving an advising bank? Is this permissible under UCP 600, and what risks should the parties consider? Let’s look at a question from Gerson Mário. Question Dear Mr. …
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading? 3 Jun 2026 In international trade, many disputes arise not because parties misunderstand UCP 600, but because they mix up legal requirements with commercial practices. A reader recently asked Mr. Old Man about two common concerns in timber imports from Africa: whether the L/C expiry date must be linked to the shipping transit time, and whether removing the word “Clean” from “Clean On …
Does Field 39A Cover Quantity Tolerance? 3 Jun 2026 A reader recently sent Mr. Old Man an interesting question about quantity tolerance under an L/C. The issue sounds simple at first glance, but in practice it often creates confusion between sales contract terms, the wording of the credit, and the application of UCP 600 Article 30. Here is the question and discussion. Question Dear Mr. Old Man, I would …
CAN A COMMERCIAL INVOICE EXCEED THE LC AMOUNT? 3 Jun 2026 One area that occasionally causes confusion under UCP 600 is the relationship between Article 18(b) and Article 30(a). Many practitioners assume that a commercial invoice may exceed the LC amount only where the credit expressly allows a tolerance, or where the words “about” or “approximately” are used in connection with the credit amount under Article 30(a). However, Article 18(b) provides …
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks?
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Mr Old Man Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks? Questions relating to insurance documents continue to generate a surprising number of discrepancies under letters of credit. One area that occasionally causes uncertainty is whether an insurance docum… Read More
Does a Longer L/C Expiry Date Mean Greater Risk? And Is the Word “Clean” Really Necessary on a Bill of Lading?
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks?
Institute Cargo Clauses (A) or (Air), as Applicable – Does It Meet an LC Requirement for Institute All Risks?