DOUBLE INVOICING IN INTERNATIONAL TRADE: THE FRAUD AND NULLITY EXCEPTIONS IN LETTERS OF CREDIT – ARE THE AMERICA ACCORD AND THE UCP 500 CROOKS’ CHARTERS!?

This article: First, (a) re-examines the fraud exception rule in letters of credit transactions with specific reference to the United City Merchants v Royal Bank of Canada (the American Accord) and against the background of a recent commonwealth decision accepting nullity as a new exception; (b) evaluates its impact on over/under invoicing under the WTO Agreement on Pre-shipment Inspection of Goods in International Trade (PSI); and (c) assesses its implication on the IMF Agreement on Exchange Control implemented in the UK by the IMF Agreement Regulations 1946 made under the IMF Agreement Acts 1945 as amended. Secondly, it argues that the current UCP 500 is outmoded and inadequate to meet current needs and is therefore in need of urgent revision. Thirdly, it recommends, inter alia, that in accordance with the said commonwealth decision, fraud by third parties should be recognised by English law as an independent and separate nullity exception. Fourth, and finally, it concludes that the status-quo acts as an unwitting Crooks’ Charter for money launderers, documentary fraudsters and other white collar crimes

The Judicial Approach to Injunctions in Letters of Credit and Performance Bond Transactions: The Fraud Exception Re-examined.

The Judicial Approach to Injunctions in Letters of Credit and Performance Bond Transactions: The Fraud Exception Re-examined

Future prospects for the development of national maritime fleets

Shipping has been the exclusive preserve of a few developed nations and run on liberal principles. The end of the war saw the emergence of the developing and socialist countries, with conflicting political and economic philosophy, advocating individual national fleets. This, coupled with technological revolution, marked a change away from laissez faire. The developing countries were further dissatisfied with the effects of flags of convenience, liner conferences, the Jacidence of the rising freight rates and the emergence of synthetics, which undermined their international trade positions as suppliers of raw materials. Improvements of a country's balance of payments position is a major rationale for shipping. However; the developing world lacks the prerequisites for the establishment and development of economically viable national fleets, hence their resort to the use of restrictive traditional methods. Ironically, in this they are joined by the US. Conflicts arise when the use of these methods are aided by state protectionism and extension of the rationale to include political and security reasons. Contravention of international law and possible economic disruptions threaten to wreck the very fabric of national fleets. This study sets out to outline these traditional methods, the ensuing consequences of the said approach and to seek remedies which might assist in transforming the confrontation to co-operation in the form of joint ventures in the future prospects for the development of national and international fleets.</p

Implementing the UNCTAD Code of Conduct : The UK Merchant Shipping (Liner Conferences) Act, 1982

This article analyses the UK legislation which will implement the UNCTAD Code of Conduct for Liner Conferences. The historical background to the Merchant Shipping (Liner Conferences) Act, 1982 is outlined and the author points out the relative decline of the UK merchant fleet in the face of competition from developing maritime nations, socialist countries and the USA. Provisions in the UK act curtailing the provisions of the Code are described. UK opposition to the cargo sharing and flag preference provisions of the Code is described and the article concludes by arguing that, although the Code does not satisfy all the UK demands, it remains the best option in a world increasingly dominated by protectionism.Shipping International agreements UK