• Korea Trade Review
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• v.41 no.2
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• pp.231-250
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• 2016

The study attempts to consider L/G(Letter of Guarantee) in a different angle, which is internationally used as a way of commercial customs and practices in a case when the consignee wants to receive the goods without the original Bill of Lading, Thus, this study focuses more on verifying the usage of L/G in Mixed Payment System and the range of guarantee responsibility by an issuing bank through case analysis. This case uses a mixed payment method of L/C(Letter of Credit) and T/T(Telegraphic Transfer) in the transaction of goods. The issuing bank of L/C issues L/G with the amount of L/C which is the same as the amount as C/I(Commercial Invoice). However the carrier deliver all goods laden under both L/C and T/T payment with the production of L/G. In this case, because the buyer is unable to pay, the seller makes a claim for damages to the carrier that the carrier delivers the goods to the buyer against L/G. Finally, the judge gives a decision that the issuing bank of L/G should pay the whole amount of the goods. In this case, the main issue of the dispute is the range of guarantee responsibility by the issuing bank of L/G. As a result of the case analysis, the study suggests two counter strategies for smooth utilization in international trade environment. First, in the case of mixed payment system, a seller should issue a commercial invoice separately based on the amount of each settlement plan in order to clarify the liability of guarantee. Second, banks should establish a new form for L/G including a sentence for verifying liabilities of the bank's side in the current form of L/G.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.19
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• pp.119-138
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• 2003

ICC(International Chamber of Commerce) developed new rule on the presentation of electronic record in L/C transactions. This rule named as the e-UCP. The gists of this article are on the application of e-UCP in practice and it's some problems. The e-UCP is the supplement of current exisiting UCP but is superior to UCP under some circumstances. The e-UCP is only apply to the presentation of electronic record regardless of type of L/C(for example, traditional paper L/C or electronic L/C). The presentation of electronic record has some problems which has not seen in the presentation of paper document. These peblems are Time, Place of presentation, and format of electronic record and so on. The e-UCP provided on the basis of these problems. However, the e-UCP has some obscure provisions on the examination of electronic record and the corruption of electronic record. Who is responsible for the corruption of electronic record by the virus on the system of bank ? The current e-UCP is not clear on this matter. We have to note followings in case of presenting the documents electronically and applying the e-UCP. First, Beneficiary has additional duty to notice of completion of presentation. Second, It will be increasing the clean NEGO through prompt feedback of the descrepancy at the presenting time. Third, It is no use of L/G(Letter of Guarantee).