I think that banks are justified in taking discrepancies handling fee. It is far economical for banks to handle documents without discrepancies than with discrepancies because the time spent on such documents are much less than those with discrepancies.If all the doocuments presented under documenta...

Giving discount is a normal trade practice. Invoice being a memo of cost where else can a discount be shown? Unless the Credit specifically prohibited it, a discount would be acceptable. However, beneficiaries seeking to indicate discount in their invoice have to be careful that their generosity doe...

If payment is being made against non-negotiable copy of BL, it raises the question whether the Credit is a documentary credit or a Standby Credit. If it is a Standby Credit, then there are whole-lot of clauses in UCP500 that would not be made applicable. If it is a documentary credit, then in my vie...

Credit stated that charges outside issuing bank's country were for account of beneficiary. Credit also stated that documents have to be given handed over to XYZ bank in Hong Kong. This bank being outside the country of the LC issuing bank will look to the beneficiary for collecting their charges, wh...

I rember asking this question to Mr. Charles Del Busto when he came down to Bahrain to introduce UCP 500 ie. why UCP does not talk about transhipment when dealing with Charter Party BL. His reply, in summary, was that chartered vessels are not expected to tranship goods enroute but complete the jour...

Yes, I think it should.
N. D. George
Head of Trade Finance
National Bank of Fujairah
P.O. Box 2979
Dubai.