Question 3: Case study L/C: 2021ABC2801123 dated 28th April, 2021 Amount: USD 130,500.00 L/C at sight Advising Bank: OCB

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Question 3: Case study
L/C: 2021ABC2801123 dated 28th April, 2021
Amount: USD 130,500.00
L/C at sight
Advising Bank: OCBC Shanghai
Beneficiary: Purple Could Co., Ltd – HongKong
Applicant: Hung Sang Co., Ltd
Issuing bank: ABC bank, Vietnam
After examining the presented documents, ABC bank advised the
applicant about
the compliance of documents and then Hung Sang Co. agreed to pay
and receive the
documents for taking delivery.
ABC bank debited Hung Sang’s account and transferred money to
the beneciary
on Friday 11th June 2021.
In the morning of 12nd July 2021, Hung Sang completed the
imported customs
clearance and trucked the container to their warehouse, but when
the container went
through the scaling machine, the machine showed that the weight
of the container was
very light, not same as the nature of the ordered goods.
Hung Sang immediately advised the ABC bank to hold the payment,
but it was
impossible because the transferring order went out.
According to ABC bank’s recommendation, Hung Sang asked SGS VN
to survey the
container while unpacking this container, and the survey report
showed that the goods
shipped in container were not ones ordered by Hung Sang.
a. Who bears the above risk? Why?
b. Please suggest solutions to protect Applicant’s benefit in
future.
c. Another shipment (2 containers) which is also paid by at
sight L/C sent by
Purple Cloud will arrive HaiPhong Port in 2 more days, ABC bank
is about to
examine the documents. In position of ABC bank, what would you
do to protect
the importer’s benefit?