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Age of Vessel
Posted: Mon Mar 19, 2012 9:20 pm
by Sabrina
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
Vessel age
Posted: Mon Mar 19, 2012 9:25 pm
by abrar
a) Condition is non-documentary
age of vessel
Posted: Mon Mar 19, 2012 9:27 pm
by Sabrina
Non documentary because it's not been mentioned if the condition should be mentioned in any document presented under LC?
Non-documentary
Posted: Mon Mar 19, 2012 9:52 pm
by abrar
Yes.
NON-DOCUMENTARY
Posted: Tue Mar 20, 2012 12:25 am
by bosnia
It's non-documentary condition.
But why?
Posted: Tue Mar 20, 2012 1:29 am
by kimsindberg
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
vessel age
Posted: Tue Mar 20, 2012 10:49 am
by senioreta
a. Disregard the clause treating it as Non-Documentary Condition
non documentary condition
Posted: Tue Apr 02, 2013 1:19 pm
by nemishjain
pls consider the same as non documentary condition and ignore
non documentary condition and ignore
Posted: Tue Apr 02, 2013 2:45 pm
by gaoboethen
non documentary condition and ignore
Non-documentary
Posted: Tue Apr 02, 2013 8:45 pm
by thanhminh
It 's non-documentary condition and NO doc required by LC may stipulated that the age of vessel is over 15.
Age of Vessel
Posted: Wed Apr 03, 2013 1:00 am
by Sasinbad
obviously, it is a non dc condition-ignore it
non-documentary but could not be ignored
Posted: Wed Apr 03, 2013 5:21 pm
by thanhminh
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
Additional Conditions
Posted: Wed Apr 03, 2013 7:52 pm
by tradebanker
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?
Age of Vessel
Posted: Mon Apr 08, 2013 1:52 pm
by Sweta
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
REASON
Posted: Tue Apr 09, 2013 7:54 pm
by venkat3197
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
Age of vessel
Posted: Wed Apr 10, 2013 11:00 am
by picant
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
Non documentary conditions
Posted: Wed Apr 10, 2013 11:01 pm
by MOHINDER
Its a Non documentary condition and should be disregarded
Re: Age of Vessel
Posted: Sat Jul 25, 2020 4:41 pm
by Tzeweeeng
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.
Re: Age of Vessel
Posted: Sun Dec 13, 2020 8:50 am
by TaiOanlan
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,
Re: Age of Vessel
Posted: Mon Jan 11, 2021 8:19 pm
by cristiand969
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