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Articles by Month

December 2015

The Risk Ladder
23/12/2015
For any trade finance transaction, it is imperative that the buyer and seller agree upon the correct or appropriate form of settlement...
Need for a revision of URC?
21/12/2015
Every so often, the issue of revising the Uniform Rules for Collections (URC) is raised...
The first UCP: what survived?
18/12/2015
It can be a fascinating experience to delve into earlier versions of Uniform Customs and Practice (UCP) in order to understand how it developed into one of the most trusted sets of rules ever used in the trade environment...
Mitigating risk
16/12/2015
A very simple acronym DAVEGARY will provide you with most of the information required to handle the risk elements of a trade transaction...
ISBP: General considerations when checking documents
14/12/2015
Selected extracts from our ISBP training modules...
The principle of autonomy
11/12/2015
A documentary credit is a written undertaking given by a bank (Issuing Bank) to the seller (Beneficiary) on the instruction of the buyer (Applicant) to pay at sight or at a determinable future date up to a stated amount of money...
Endorsing Documentary Credits
09/12/2015
Prior to the development and use of electronic communication platforms, such as SWIFT, to deliver issuances of documentary credits, it was common practice to include a requirement in a documentary credit that a negotiating bank should endorse the amount of any drawings on the reverse of the credit itself and that such endorsement should be confirmed on the schedule to the issuing bank enclosing the presentation...
Missing Documents
07/12/2015
Documents transmitted between parties under documentary credits invariably arrive at the correct destination...
Unloading Costs
04/12/2015
When a documentary credit states that costs additional to freight are not acceptable, a bill of lading, for example, is not to indicate that costs additional to freight have been or will be incurred...
Revolving Credits
02/12/2015
A revolving documentary credit is issued to avoid the issuance of repeat documentary credits in respect of the same type of goods, same parties and same documentation...