FREIGHT PREPAID VS FREIGHT PAYABLE AT DESTINATION — A LOOK BACK AS TA.958 APPROACHES INTRODUCTION With Technical Advisor Opinion TA.958 now on the table—specifically the question of whether a bill of lading showing both “freight prepaid” and “freight payable at D” should be considered conflicting under a credit that explicitly requires the document to be marked “freight prepaid”—the trade finance community is once again paying close attention. As we all know, the ICC Banking … Read More
When CIF/CIP Value Cannot Be Determined — How Should the Invoice Be Issued? Intro In practice, banks and beneficiaries often face uncertainty when a credit requires a CIF or CIP term but does not state how freight or insurance should be shown. Must the invoice break them down? What if the actual freight or insurance charges are unknown at the time of issuing documents? Mr. Old Man shares some guidance based on ISBP … Read More
FREIGHT PREPAID VS FREIGHT PAYABLE AT BASEL QUESTION Dear Mr. Old Man, The LC requires a full set of original Bills of Lading made out to the order of the issuing bank, marked “FREIGHT PREPAID.” The presented Bill of Lading is marked “FREIGHT PREPAID” and also states “FREIGHT PAYABLE AT BASEL.” May this be considered a discrepancy on the grounds that the Bill of Lading contains conflicting … Read More