Hi, It is complicated to address the issue without seeing the document itself. It is right to say that the fact that the document has a box for some data does not imply that the box must be completed. Nevertheless, the field 12 of GSP-A represents the only "official" field on the document ...

Hi, In my opinion the mere fact that the invoice shows some of the goods of a different "sub-type" does not make the invoice discrepant. The invoiced goods are still of type "ABC" and "XYZ". The goods description corresponds to that in the L/C and there is no conflict. ...

Hi Shahed, What you described in your query is a perfect example of negotiation in the way as it is defined by UCP and as it had been in usage for years and years. Unfortunately, later some banks started to use the term "negotiation" for a number of different things except real negotiation...

Hi, Only if the credit expressly states that overinsurence is prohibited or that insured amount must be exactly fixed at a certain percentage. If the credit merely states "for 110 pct of CIF amount" or similar or if it is silent on the insurance cover, it only sets the bottom limit. In suc...

Hi. Let me add some words related to the signatures. I agree that the issuing bank's intention, although not very carefully described, was to ensure that the signatures be checked against the specimen sent to the nominated bank. I cannot, however, agree with some of the comments (especially Jeremy's...

Hi Jeremy, Re the first clause: I saw some credits where we received funds in advance of a presentation with statement that the goods have already been received, the funds may be forwarded to beneficiary, and the beneficiary is requested to present documents which the presenting bank is requested to...

I guess there is no relation to "red clause" credits - they were intended to provide for advance not in 100% and had terms related to refund of advance if the documents were not presented or presented discrepant with discrepancies not waived. The query does not mention any such clause henc...

Hi, I must say I would be reluctant to say so. I am unsure if absence of any prohibition in UCP allows such action. Of course there is a freedom of contract between the confirming bank and the beneficiary. But a request for confirmation is rather a mandate contract between issuing bank and confirmin...

Laurence, there is no doubt that in many situations the proposed solution would not be applicable. It is very often the case that it is not in the interests of the bene and/or their bankers to turn attention to any points, which bene's bankers might find not in line with the Credit terms and conditi...

Jeremy, The notion of "customer" has been covered quite extensively in this forum and I shall therefore try to be very brief. You are right saying that applicant is issuing bank's customer or principal. By issuing a credit based upon applicant's application the issuing bank enters into a c...