Age of Vessel

Sabrina · Post by **Sabrina** » Mon Mar 19, 2012 9:20 pm

Dear Experts,

Seek your opinion on following Question:

Consider the following.
LC Condition :
Field 46A: Documents Required
+ Commercial Invoice in 2 Originals
+Packing List in 2 Originals
+Bill of Lading consigned and notify the Applicant marked Freight Prepaid

Field 47A: Additional Condition
+ Goods should be shipped on a Vessel no more than 15 Years of Age.

Beneficiary presented the documents and no mention was made of the age of the Vessel.
Nominated Bank should

a. Disregard the clause treating it as Non-Documentary Condition
b. Ask beneficiary to confirm the Vessel’s Age
c. Refuse the documents as irregular
d. Seek clarification from the Issuing Bank

Thank you,
Nitin

abrar · Post by **abrar** » Mon Mar 19, 2012 9:25 pm

a) Condition is non-documentary

Sabrina · Post by **Sabrina** » Mon Mar 19, 2012 9:27 pm

Non documentary because it's not been mentioned if the condition should be mentioned in any document presented under LC?

abrar · Post by **abrar** » Mon Mar 19, 2012 9:52 pm

bosnia · Post by **bosnia** » Tue Mar 20, 2012 12:25 am

It's non-documentary condition.

kimsindberg · Post by **kimsindberg** » Tue Mar 20, 2012 1:29 am

I never understood this requirement. Would anyone that steps into a train ask about the age of the train before buying the ticket?

Best regards
Kim
www.remburs.com

senioreta · Post by **senioreta** » Tue Mar 20, 2012 10:49 am

a. Disregard the clause treating it as Non-Documentary Condition

nemishjain · Post by **nemishjain** » Tue Apr 02, 2013 1:19 pm

pls consider the same as non documentary condition and ignore

gaoboethen · Post by **gaoboethen** » Tue Apr 02, 2013 2:45 pm

non documentary condition and ignore

thanhminh · Post by **thanhminh** » Tue Apr 02, 2013 8:45 pm

It 's non-documentary condition and NO doc required by LC may stipulated that the age of vessel is over 15.

Sasinbad · Post by **Sasinbad** » Wed Apr 03, 2013 1:00 am

obviously, it is a non dc condition-ignore it

thanhminh · Post by **thanhminh** » Wed Apr 03, 2013 5:21 pm

In my opinion, although it is non-documentary, we could not ignore it. We have to ensure that not any doc required by LC can indicate the age of vessel over 15 as it is still an LC condition.

thanhminh

tradebanker · Post by **tradebanker** » Wed Apr 03, 2013 7:52 pm

since there is no information regarding the age of the vessel it should be non-documentary but then why is there such an additional clause. So all additional clauses that are non-documentary can be ignored?

Sweta · Post by **Sweta** » Mon Apr 08, 2013 1:52 pm

Hi

Non documentary as L/C does not require any document to certify the same nor L/C calls for B/L to evidence the same

Thanks

venkat3197 · Post by **venkat3197** » Tue Apr 09, 2013 7:54 pm

Usually the ship will be in good condition for 15 to 20 years max..if shipment is made on a vessel say 25 years which is very old ..the ship may get damaged easily...so applicant requires this condition to safeguard that transportation is proper...

kimsindberg wrote:I never understood this requirement. Would anyone that steps into a train ask about the age of the train before buying the ticket?

Best regards
Kim
www.remburs.com

picant · Post by **picant** » Wed Apr 10, 2013 11:00 am

Hi Pals,

the reason to ask for this datum lies in insurance conditions. If the vessel is over 25 years you or someone has to pay extra premium.
Naturally it must be required as certification and not a non documentary condition.
Other comments appreciated
Ciao

MOHINDER · Post by **MOHINDER** » Wed Apr 10, 2013 11:01 pm

Its a Non documentary condition and should be disregarded

Tzeweeeng · Post by **Tzeweeeng** » Sat Jul 25, 2020 4:41 pm

Hi all, the correct answer given by LIBF online specimen paper is

A confirming bank receives a documentary credit containing the following additional condition: 'carrying vessel must not be older than 15 years'. Upon receipt of the documents from the beneficiary, the confirming bank must:
Select one:
A. deem such condition as not stated and disregard it.
B. look for this statement on one of the documents.
C. refuse payment to the beneficiary until receipt of the issuing bank's clarification.
D. require the beneficiary to issue a statement of compliance.

Incorrect

Feedback
The correct answer is: deem such condition as not stated and disregard it.

However what are the usual workplace practices? Do we really ignore this clause? Like Picant has shared, the insurance might require it and this clause in the credit is not to be ignored although CDCS answer state to ignore the clause.

Further elaboration on this topic is appreciated.

TaiOanlan · Post by **TaiOanlan** » Sun Dec 13, 2020 8:50 am

It’s one of those bad LC issued by a bank. (Creating room for dispute)
You can ignore only if there is no indication of “document stipulate the age of vessel is required” in other place of the LC.

Regards,

cristiand969 · Post by **cristiand969** » Mon Jan 11, 2021 8:19 pm

Tzeweeeng wrote: ↑
Sat Jul 25, 2020 4:41 pm
Hi all, the correct answer given by LIBF online specimen paper is

A confirming bank receives a documentary credit containing the following additional condition: 'carrying vessel must not be older than 15 years'. Upon receipt of the documents from the beneficiary, the confirming bank must:
Select one:
A. deem such condition as not stated and disregard it.
B. look for this statement on one of the documents.
C. refuse payment to the beneficiary until receipt of the issuing bank's clarification.
D. require the beneficiary to issue a statement of compliance.

Incorrect

Feedback
The correct answer is: deem such condition as not stated and disregard it.

However what are the usual workplace practices? Do we really ignore this clause? Like Picant has shared, the insurance might require it and this clause in the credit is not to be ignored although CDCS answer state to ignore the clause.

Further elaboration on this topic is appreciated.

Picant is right about the reason behind this clause. However, it is the duty of the issuing bank to be aware of UCP and ISBP provision and require the appropriate document

Age of Vessel

Age of Vessel

Vessel age

age of vessel

Non-documentary

NON-DOCUMENTARY

But why?

vessel age

non documentary condition

non documentary condition and ignore

Non-documentary

Age of Vessel

non-documentary but could not be ignored

Additional Conditions

Age of Vessel

REASON

Age of vessel

Non documentary conditions

Re: Age of Vessel

Re: Age of Vessel

Re: Age of Vessel