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 Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
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 …
Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule was dated after the latest date for presentation. The schedule also contained a certification that the documents were presented within the credit validity. Does that certification prevent the issuing bank from raising a “late … Read More
Lái xe công nghệ: Tự do hay tự lo? Hôm nay, Mr. Old Man đọc được một bài viết rất hay của Tiến sĩ Võ Duy Nghi với một cái tựa nghe qua đã thấy… hơi nhói: “Lái xe công nghệ: Tự do hay tự lo?” Một câu hỏi tưởng đơn giản mà không đơn giản chút nào. Bài viết đề cập đến cuộc sống và những vấn đề … Read More
Sudan Sanctions and D/P Collection: Can the Payment Be Routed Through Another Bank? Introduction A practical question has arisen concerning a D/P (Documents against Payment) collection involving goods of Sudanese origin. The goods—watermelon seeds—were shipped from Sudan and have already arrived at customs. The importer intends to make payment in AED to the beneficiary in Dubai. The collecting bank received an MT199 from Mashreq Bank New York setting out its sanctions and internal … Read More
Is the Central Bank Liable if the Issuing Bank Becomes Bankrupt? Introduction An issuing bank assumes a primary obligation to honor a complying presentation under article 7 of UCP 600. However, beneficiaries occasionally raise a more difficult question: What happens if the issuing bank becomes insolvent, is subject to international sanctions, or is otherwise unable to fulfill its undertaking? Would the central bank, the ministry of finance, or another government authority … Read More
Mistyping of the L/C Number on Documents: Is It a Valid Discrepancy? It is common for documentary credits to require that all presented documents indicate the credit number. In practice, however, typographical errors occasionally occur. A frequently asked question is whether an issuing bank may refuse documents when the credit number appears incorrectly, even though the mistake is merely the result of a typing error. The following question concerns a situation in … Read More
Late Payment Interest Claim under a Sight Letter of Credit Under a sight letter of credit, the issuing bank is required to honour a complying presentation. However, UCP 600 also grants banks up to five banking days to examine the documents. The question often arises whether an issuing bank that effects payment after the expiry of the five-day examination period is liable to pay late-payment interest, particularly when the credit … Read More
Does “Clean On Board” Eliminate the Need for a Dated Onboard Notation? A recurring question in documentary credit practice is whether the issue date of a bill of lading may be treated as the shipment date when the document is pre-printed “Received by the carrier” but also bears the wording “Clean On Board”. The answer is not always straightforward and depends on the interaction between UCP 600, ISBP, and ICC Banking Commission … Read More
Does a Certificate Stating Compliance with a Phytosanitary Certificate Satisfy the L/C Requirement? Introduction: The interpretation of documentary requirements containing multiple alternatives linked by the word “or” can sometimes lead to different conclusions between the issuing bank and the beneficiary. The following case concerns an L/C clause requiring a certificate relating to the treatment of wood packing material, where the issuing bank and the beneficiary bank adopted different interpretations of the same wording. … Read More
Origin Station vs. Airport of Departure on an Air Waybill A reader recently asked whether an air waybill would be discrepant if it uses the terms “Origin Station” and “Destination Station” instead of “Airport of Departure” and “Airport of Destination” required by the letter of credit. The reader also asked whether the presence of both a Master Air Waybill (MAWB) number and a House Air Waybill (HAWB) number, together with … Read More
Bill of Lading or Multimodal Transport Document? Which UCP 600 Article Applies? A credit requires a “full set clean on board bill of lading” but, at the same time, field 44A specifies an inland place of taking in charge, while fields 44E and 44F indicate the port of loading and port of discharge. A multimodal transport document is subsequently presented, bearing only the notation “Received for Shipment” and no dated on-board notation. … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule was dated after the latest date for presentation. The schedule also contained a certification that the documents were presented within the credit validity. Does that certification prevent the issuing bank from raising a “late … Read More
Lái xe công nghệ: Tự do hay tự lo? Hôm nay, Mr. Old Man đọc được một bài viết rất hay của Tiến sĩ Võ Duy Nghi với một cái tựa nghe qua đã thấy… hơi nhói: “Lái xe công nghệ: Tự do hay tự lo?” Một câu hỏi tưởng đơn giản mà không đơn giản chút nào. Bài viết đề cập đến cuộc sống và những vấn đề … Read More
Sudan Sanctions and D/P Collection: Can the Payment Be Routed Through Another Bank? Introduction A practical question has arisen concerning a D/P (Documents against Payment) collection involving goods of Sudanese origin. The goods—watermelon seeds—were shipped from Sudan and have already arrived at customs. The importer intends to make payment in AED to the beneficiary in Dubai. The collecting bank received an MT199 from Mashreq Bank New York setting out its sanctions and internal … Read More
Is the Central Bank Liable if the Issuing Bank Becomes Bankrupt? Introduction An issuing bank assumes a primary obligation to honor a complying presentation under article 7 of UCP 600. However, beneficiaries occasionally raise a more difficult question: What happens if the issuing bank becomes insolvent, is subject to international sanctions, or is otherwise unable to fulfill its undertaking? Would the central bank, the ministry of finance, or another government authority … Read More
Mistyping of the L/C Number on Documents: Is It a Valid Discrepancy? It is common for documentary credits to require that all presented documents indicate the credit number. In practice, however, typographical errors occasionally occur. A frequently asked question is whether an issuing bank may refuse documents when the credit number appears incorrectly, even though the mistake is merely the result of a typing error. The following question concerns a situation in … Read More
Late Payment Interest Claim under a Sight Letter of Credit Under a sight letter of credit, the issuing bank is required to honour a complying presentation. However, UCP 600 also grants banks up to five banking days to examine the documents. The question often arises whether an issuing bank that effects payment after the expiry of the five-day examination period is liable to pay late-payment interest, particularly when the credit … Read More
Does “Clean On Board” Eliminate the Need for a Dated Onboard Notation? A recurring question in documentary credit practice is whether the issue date of a bill of lading may be treated as the shipment date when the document is pre-printed “Received by the carrier” but also bears the wording “Clean On Board”. The answer is not always straightforward and depends on the interaction between UCP 600, ISBP, and ICC Banking Commission … Read More
Does a Certificate Stating Compliance with a Phytosanitary Certificate Satisfy the L/C Requirement? Introduction: The interpretation of documentary requirements containing multiple alternatives linked by the word “or” can sometimes lead to different conclusions between the issuing bank and the beneficiary. The following case concerns an L/C clause requiring a certificate relating to the treatment of wood packing material, where the issuing bank and the beneficiary bank adopted different interpretations of the same wording. … Read More
Origin Station vs. Airport of Departure on an Air Waybill A reader recently asked whether an air waybill would be discrepant if it uses the terms “Origin Station” and “Destination Station” instead of “Airport of Departure” and “Airport of Destination” required by the letter of credit. The reader also asked whether the presence of both a Master Air Waybill (MAWB) number and a House Air Waybill (HAWB) number, together with … Read More
Bill of Lading or Multimodal Transport Document? Which UCP 600 Article Applies? A credit requires a “full set clean on board bill of lading” but, at the same time, field 44A specifies an inland place of taking in charge, while fields 44E and 44F indicate the port of loading and port of discharge. A multimodal transport document is subsequently presented, bearing only the notation “Received for Shipment” and no dated on-board notation. … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? 11 Aug 2026 Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule was dated after the latest date for presentation. The schedule also contained a certification that the documents were presented within the credit validity. Does that certification prevent the issuing bank from raising a “late …
Lái xe công nghệ: Tự do hay tự lo? 11 Aug 2026 Hôm nay, Mr. Old Man đọc được một bài viết rất hay của Tiến sĩ Võ Duy Nghi với một cái tựa nghe qua đã thấy… hơi nhói: “Lái xe công nghệ: Tự do hay tự lo?” Một câu hỏi tưởng đơn giản mà không đơn giản chút nào. Bài viết đề cập đến cuộc sống và những vấn đề …
Sudan Sanctions and D/P Collection: Can the Payment Be Routed Through Another Bank? 9 Aug 2026 Introduction A practical question has arisen concerning a D/P (Documents against Payment) collection involving goods of Sudanese origin. The goods—watermelon seeds—were shipped from Sudan and have already arrived at customs. The importer intends to make payment in AED to the beneficiary in Dubai. The collecting bank received an MT199 from Mashreq Bank New York setting out its sanctions and internal …
Is the Central Bank Liable if the Issuing Bank Becomes Bankrupt? 9 Aug 2026 Introduction An issuing bank assumes a primary obligation to honor a complying presentation under article 7 of UCP 600. However, beneficiaries occasionally raise a more difficult question: What happens if the issuing bank becomes insolvent, is subject to international sanctions, or is otherwise unable to fulfill its undertaking? Would the central bank, the ministry of finance, or another government authority …
Mistyping of the L/C Number on Documents: Is It a Valid Discrepancy? 8 Aug 2026 It is common for documentary credits to require that all presented documents indicate the credit number. In practice, however, typographical errors occasionally occur. A frequently asked question is whether an issuing bank may refuse documents when the credit number appears incorrectly, even though the mistake is merely the result of a typing error. The following question concerns a situation in …
Late Payment Interest Claim under a Sight Letter of Credit 8 Aug 2026 Under a sight letter of credit, the issuing bank is required to honour a complying presentation. However, UCP 600 also grants banks up to five banking days to examine the documents. The question often arises whether an issuing bank that effects payment after the expiry of the five-day examination period is liable to pay late-payment interest, particularly when the credit …
Does “Clean On Board” Eliminate the Need for a Dated Onboard Notation? 8 Aug 2026 A recurring question in documentary credit practice is whether the issue date of a bill of lading may be treated as the shipment date when the document is pre-printed “Received by the carrier” but also bears the wording “Clean On Board”. The answer is not always straightforward and depends on the interaction between UCP 600, ISBP, and ICC Banking Commission …
Does a Certificate Stating Compliance with a Phytosanitary Certificate Satisfy the L/C Requirement? 8 Aug 2026 Introduction: The interpretation of documentary requirements containing multiple alternatives linked by the word “or” can sometimes lead to different conclusions between the issuing bank and the beneficiary. The following case concerns an L/C clause requiring a certificate relating to the treatment of wood packing material, where the issuing bank and the beneficiary bank adopted different interpretations of the same wording. …
Origin Station vs. Airport of Departure on an Air Waybill 7 Aug 2026 A reader recently asked whether an air waybill would be discrepant if it uses the terms “Origin Station” and “Destination Station” instead of “Airport of Departure” and “Airport of Destination” required by the letter of credit. The reader also asked whether the presence of both a Master Air Waybill (MAWB) number and a House Air Waybill (HAWB) number, together with …
Bill of Lading or Multimodal Transport Document? Which UCP 600 Article Applies? 7 Aug 2026 A credit requires a “full set clean on board bill of lading” but, at the same time, field 44A specifies an inland place of taking in charge, while fields 44E and 44F indicate the port of loading and port of discharge. A multimodal transport document is subsequently presented, bearing only the notation “Received for Shipment” and no dated on-board notation. …
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More
Mr Old Man Late Presentation: Does the Nominated Bank’s Certification Protect the Presentation? Intro Another interesting question on documentary examination: the documents were allegedly presented to the nominated bank within the stipulated presentation period, but the bank’s covering schedule … Read More