Release of Discrepant Documents

Disclaimer

Our expert's opinions do not necessarily reflect the views of the ICC or the ICC Commission on Banking Technique and Practice. No legal imputation should be attached to any of the contents here and no legal responsibility is accepted for any errors, omissions or misleading statements or opinions caused by negligence or otherwise. Our expert's opinions are given for your reference only and you should not rely upon or act on our opinions, of which we are not held liable. You should consult your legal counsel or other experts for their opinions in your specific cases.
No opinions or comments can be reproduced in whole or in part without our express written permission.

Posted in DC-Pro on Dec 16, 2001 at 3:43:43 PM
Hatem,
Although you consider our relationship as client to principal, we see and treat your banking institute as a customer. Therefore we always try to please our customers by giving them a little more than they ever expect to keep them. By giving them more than they expect, we have automatically fulfilled our contractual obligations. Therefore we do not have to worry about the client part and our mindset is 100% focused on customer to alert us of the importanace of customer service.
This year is our 10th Anniversary. It is not easy to do business on such a narrow scope of services. In resolution of DC disputes, which form the more profitable part of our business, we are like a fire service station. If our customers have no fire, they won't call us. In this sense, as far as you can put out their fires efficiently, they will call you again next time they have fire, even if your customer service attitude is not good at all.
Would you not call the same fire station in your area even if in your last fire, the firemen treat you badly but they are successful in putting out the fire <within reasonable time>?
However, we do not take such attitude. Why? We would like to let our wise members to guess the reasons.
[edited Dec 16, 2001 3:51:30 PM]

Posted in DC-Pro on Dec 14, 2001 at 11:02:11 PM
From our understanding as a consultant giving training in quality customer services and trade finance, we consider there are differences in the terms "customer" and "client".
"CUSTOMER" FOR "SERVICES" ...
"CLIENT" FOR "LEGAL RELATIONSHIP" ...
HOW THE COMMON LAW JUDGES USED THESE TWO WORDS ...
IN THE GLENCORE CASE ...
IN THE BANCO SANTANDER CASE ...
HOW TO CHOOSE YOUR BANKER ...
AN INSPIRING TV INTERVIEW ...
WHAT IS GOOD CUSTOMER SERVICE? ...

Posted in DC-Pro on Sep 17, 2001 at 9:42:44 PM
Dear Jeremy,
DC PRO IS A FREE DISCUSSION FORUM
Please do not see your involvement in the DC Pro Discussion Forum as sitting in a witness box to be cross-examined or sitting in the CDCS examination room to answer questions. In both situations, you need to answer the questions exactly as they are worded and be 100% related or relevant.
Don't forget this is a FREE discussion forum that any side issues brought forward or inspired by a member can be discussed. You choose not to respond to those side issues which you consider "irrelevant", fine. We respect your right to remain silent. But you have no right to police other members, what to talk and what not to talk. Only the DC Pro editor has such power. In other words, if you see a message from a member not being removed here, it is however relevant, whether one likes it or not!
LATERAL THINKING AND CREATIVE THINKING BY EDWARD DE BONO TO RESOLVE DIFFICULT PROBLEMS
In fact our attitude and approach are quite different. Since we cannot convince you by "direct confrontation" which may hurt our feelings and not effective at all, we whould like to inspire you with side issues to consider the issue of "releasing documents to the applicant without the beneficiary's approval" from a customer service point of view, IN ADDITON TO purely from a DC Technician's point of view.
Although we are also a DC technician, but taught by our consultancy experience learnt from the market place, the hard way if you will, we follow and practise ...

Posted in DC-Pro on Sep 16, 2001 at 1:31:53 AM
We would like to share an interesting story about MBWA to add interst to and also to cool off the otherwise heated arguments here.
THE YKK SUCCESS STORY
A CEO from a garment manufacturer visited the YKK zipper manufacturing complex to make complaints on the delayed delivery. When he entered the complex, he met a man in causal wears, helping other workmen to pack the zippers into cartons...

Posted in DC-Pro on Sep 15, 2001 at 12:08:35 AM
Dear Jeremy,
We are glad to share with you our understanding about MBWA, which is practised to a certain extent by HP, United Airlines, Corning, 3M, Citibank, Tupperware, Walt Disney, IBM...and of course to full extent by us too although we are a very small potato.
MBWA TO VERIFY FACTS REPORTED
MBWA is classic management concept. It stands for ...

Posted in DC-Pro on Sep 14, 2001 at 4:03:33 PM
Dear Jeremy,
AGREE TO DISAGREE
It is perfectly OK that we hold different opinions to the same issue. We do not wish to argue further with you as we have limited time to be spent in the DC Pro due to "rice and noodles" reasons. We also wonder how you manage to get heavily involved in the DC Pro discussions and yet you can handle all your complex duties in your bank as you have told us in your last response. Would you care to share your little secrets with other fellow banker members here?
RELATIONSHIP BETWEEN ISSUING BANK AND APPLICANT
To respond to the relationship between the applicant and the issuing bank, we of course understand and agree that ...

Posted in DC-Pro on Aug 21, 2001 at 7:39:37 PM
A GOOD BOY WOULD NOT DO NAUGHTY THINGS DISCOURAGED BY HIS PARENTS
Putting the special "documents disposal clause" as suggested by Mr. J. Smith in a DC is of course convenient to the issuing bank but for anything "discouraged" (rather than "prohibited") by the ICC Banking Commission, a reputable bank that wishes to earn the respect of the trading community should think twice in putting such special clasue (what we consider as a kind of "soft clause") in its DC.
Article 14 of the UCP 500 gives ...

Posted in DC-Pro on May 26, 2001 at 4:14:29 PM
BANKS SHOULD SUPPORT FAIR TRADE
Even if this is inserted in the LC as a special condition, it may be rejected by certain courts of law because it is against the principle of fair trade, which healthy growth of international trade relies upon.
To go further, can we add ...

Posted in DC-Pro on May 25, 2001 at 8:35:52 PM
PRACTICE DISCOURAGED BY ICC
This is a banking practice (or malpractice) discouraged by ICC Banking Commission.
Before payment, the documents belong to the presenter (either the negotiating bank or the beneficiary) and without the disposal authority given by the presenter, the issuing bank has no right to dispose of the documents in a manner it prefers.
A BANK AS AN INDEPENDENT AND NEUTRAL PAYMASTER
In other words, to make it convenient to its customer, the applicant, the issuing bank, by adding such terms and conditions in the LC, has lost its neutrality and its independent position as a paymaster that the beneficiary can rely upon.
The road to evil is often paved with goodwill.
[edited Jul 22, 2001 6:03:46 PM]

(905) 237-6465

(905) 237-6867