Understanding Functions of Documents Clearly To Determine Discrepancies Confidently and Accurately

(T. O. International Trade Seminars)

Introduction
ISBP 645 Paragraph 43 requires that discrepancies must be determined based on the function(s) of documents. Similar decisions based on function(s) of documents are reflected in Paragraphs 13, 14, 20, 21, 37, 39, 40, 45(a), 50, 51, 56, 59, 61, 64, 74, 75, 77, 84, 98, 110, 119, 121, 131, 132, 143, 146, 151, 152, 154, 158, 171, 172, 175, 169, 171, 172, 184, 186, 187, 191, 197, 199 and 200.

Unfortunately function(s) of important documents, such as bills of lading, insurance documents, certificates of origin and the like are highly technical and beyond the competence level of an ordinary banker, trader or even lawyer of general practice. Hence many disputed discrepancies based on the perspectives of bankers may not be correct and subject to challenges.

Certain ICC published opinions, such as ICC Banking Commission Opinion R195 in ICC Publication 565 of 1997 on insurance documents, were reversed and published in ICC Documentary Credit Insight Volume 7 No. 3 in July 2001 after intervention of Mr. T. O. Lee who pointed out in his Article published in ICC Documentary Credit Insight Volume 3 No. 4 Autumn 1997, that these opinions were in conflict with the function(s) of the insurance documents.

We have the honour to invite Mr. T. O. Lee who has spent his lifetime in studying the function(s) of these documents to share with us the technicality that is required in determination of discrepancies in these highly technical documents. After understanding the function of each document, determination of discrepancies should not be a difficult task for bankers and traders.

Are you sure that you know the correct answers to these questions:

Why ISBP Paragraph 187 has to be reversed only two months after its publication?

Why ISBP Paragraph 185 does not allow an insurance broker to sign in his own name in an insurance document issued in his own stationery?

Is the effective date of an insurance document based on its issuing date?

Is a Draft showing two drawers and payable to two payees discrepant?

Why a liner bill of lading showing FIO is discrepant?

Why a multimodal transport bill of lading where the issuing carrier is not responsible for the second leg of carriage performed after transhipment should be examined under UCP 500 Article 23 instead of Article 26?

Why a packing list showing prices of goods is not acceptable?

Why a packing list not showing gross weights and any markings is unacceptable?

Why a charter party bill of lading needs not identity the carrier?

Contents Outline

Prime, supplementary and prohibited data content of Drafts, Commercial Invoices, Packing Lists, Marine Bills of lading, Charter Party Bills of Lading, Multimodal Transport Documents, Air Transport Documents, Road, Rail or Inland Waterway Transport Documents, Insurance Documents, Certificates of Origin, Inspection Certificates and Beneficiary's Certificates.

Function of Drafts specified under Bills of Exchange Act, 1882 of UK.

Matrix of Endorsement requirements by drawer and presenting/negotiating bank.

Functions of Proforma, Provisional, Customs, Tax and Consular Invoices.

Function of Packing Lists based on the Vienna Convention or CISG.

Why voyage number may not be necessary in Marine Bills of Lading?

Optional ports of loading and discharge in Charter Party Bills of Lading.

Unique rights and obligations of MTO in Multimodal Transport Documents according to UNCTAD/ICC Document 481.

Export licence number for products subject to quota system, e.g. textiles, in Air Waybills

Road Transport Documents under CMR, Rail Transport Documents under CIM and Inland Waterway Transport Documents under British Waterways Board General Merchandise Conditions 1973.

Handling Franchise, Excess, Deductible, Exemptions and effective date in Insurance Documents.

Difference between products and produce and impacts of FDA, Quota Systems, Tax Exemptions and inconsistent Consignees in Certificates of Origin.

Difference between Inspection Certificate, Tally Sheet, Analysis and Certificate.

Certificates for other purposes, e.g. Beneficiary's Certificate, Pedigree Certificate, Physiosanitary Certificate and Fumigation Certificate.

Case Studies.

Appendix: T. O. Lee's Comments on ISBP to ICC.

Note: This workshop may carry 6 PDU points for ICC CDCS Examination exception.
Speaker
Mr. T. O. Lee FAE, MCIArb, MITD
Mr. T. O. Lee is a world-class letter of credit expert representing Canada in various ICC Commissions, such as Banking, International Commercial Practice (Incoterms 2000) Electronic Trade, Mediation and Arbitration. He is invited by ICC to comment on the drafts of banking and trading rules, such as the UCP 500 Position Papers, URC 522, URR 525, DOCDEX, ISP 98, eUCP, Transferable Credits & UCP 500, Discrepant Documents, Waiver and Notice, International Standard Banking Practice (ISBP 645) and ICC Banking Commission Official Opinions. He is a Member of the UCP 500 Revision Consulting Group and is actively involved in ICC Commercial Crime Bureau investigations. He is a member of the Editorial Board of the ICC Publication "Documentary Credits Insight" (1994 -1999) and a Technical Adviser of "L/C Monitor" in Canada. Mr. Lee is a member of the Canadian Working Party on the ICC Commission on Banking Technique and Practice administered by the Canadian Bankers Association. Being an Accredited Arbitrator nominated by the International Center for Letters of Credit Arbitration, Inc. USA, he is also a Fellow and an Accredited Expert (Letter of Credit) of the Academy of Experts, Gray's Inn, London, a Member of the Chartered Institute of Arbitrators, England, a Member of the United Nations International Multimodal Transportation Association, Geneva and a Member of the Institute of Training and Development, England.

He was a columnist in the Lloyd's of London Press "Maritime Asia/Intermodal Asia" magazine during the period of June 1993 to March 1995. He has been contributing since August 1993, a Friday column in the "Hong Kong Economic Journal". He is a co-author with Eric Ellen in ICC Publication No. 548 "Special Report on China Trade - The Risk Factor". He chairs public seminars in China, Hong Kong, other ASEAN and Middle East Countries and is a panelist in North America, providing in-house training and consultancy services to Fortune 500 corporations and banks globally. His professional workshops are known for the 5 "i's" - interesting, informative, interactive, innovative, and inspiring. He also provides expert witness services to international legal firms in letter of credit litigations.

Details of Articles he wrote for ICC, Paris, Lloyd's of London and highlights of dispute cases resolved can be viewed in his letter of credit website www.tolee.com..

What Others Have To Say

"A brief discussion with Mr. Lee will convince you of his expertise on International Trade particularly for his knowledge and experience in maritime chartering, multimodal transport, marine cargo insurance, trade frauds, the China Trade, mediation and arbitration".
Charles del Busto -Chairman of ICC Banking Commission (1990-1996)

"Mr. Lee's presentation is thought provoking and original in its content. It brings to light not only problems with documentary credits but also solutions that you could obtain only from practical experience working in the field. I highly recommend it to both bankers and traders who are serious about letters of credit".
Jacob Katsman - Managing Editor, LC Monitor, Toronto, Canada

"Most comprehensive information in the handouts, inspiring presentation, professional in every respect, introducing the latest international trade fraud cases with in-depth analysis".
S. C. Kwok - Vice President, Citibank, Hong Kong

"Clear and focused line of thoughts, lively presentation, experienced in handling questions, lots of case studies from the speaker's own work file to be shared with us".
Ding Bo - Director, Zhum Heng Development Ltd., Guangdong Group, Hong Kong

"Handouts are clear, concise and focused, with lots of real life cases to reflect the current trading environment and the important changes in the market place".
Kenneth Y. M. Lee - Senior Consultant, Bank of Communications, Manhattan, New York, USA

Duration
One-day workshop

(416) 298-5881

(416) 292-5535