Letter of Credit Fraud
September 02, 2001 | BY
clpstaff &clp articlesDispute ResolutionYi Wen Law FirmLetter of Credit FraudIn Zhongbao Commodity Import and Export Co., Ltd. v Billiongold Int'l. Ltd, Winwick Shipping Lt.…
Dispute Resolution
Yi Wen Law Firm
Letter of Credit Fraud
In Zhongbao Commodity Import and Export Co., Ltd. v Billiongold Int'l. Ltd, Winwick Shipping Lt. and Rishelle Navigation Inc., the Xiamen Maritime Court sought to protect the defrauded PRC purchaser, but in the process reached a decision that threatens to undermine faith in letter of credit (LC) transactions in China.
Facts
On March 4 1996, the plaintiff, Zhongbao, signed a sales contract with Billiongold, pursuant to which Zhongbao opened an