EQUAL PAY FOR EQUAL QUALITY QUESTION L/C and required documents when importing scrap metals (car batteries) Dear All, I am new to International Trade and arranging Letters of Credit (previous business deals were either local or with overseas partners found on the basis of strong personal recommendations). I am now trying to arrange the purchase (import) of scrap car batteries from overseas with a contact … Read More
KNOW YOUR CUSTOMER BIMALSHRESTHA’S QUERY DEAR L/C EXPERTS, I'M IMPORTING ELECTRIC MOTORS FROM CHINA.GENERALLY THE INNER COIL OF THE MOTOR IS COPPER.BUT NOW CHINA AND OTHER COUNTRY HAS STARTED MAKING MOTORS OF ALUMINIUM WIRE AS WELL.PLZ NOTE THAT ALUMINIUM WIRE MOTORS DON,T WORK PROPERLY. I WANT MY MOTORS TO BE OF COPPER COIL.BUT I FEAR IF THEY SEND ME ALUMINIUM COIL MOTORS I … Read More
CANCELLATION FEES QUESTION Dear Mr. Old Man, LC issued ABC Bank states that amendment and confirmation fees are for account of the beneficiary. Some days ago we received from ABC Bank a request for cancellation of the LC and a claim for USD230.00 being their cancelation fees and cable charges. We advised the beneficiary of the same but the beneficiary confirmed having … Read More
ANOTHER QUERY ON REVOLVING LC QUESTION WHAT ARE THE POINTS ONE HAS TO KEEP IN MIND, WHILE OPENING REVOLVING LC? Bhatia J ————————- ANSWER Dear Bhatia, There are some definitions of revolving letter of credit, one of which is defined as follows: A revolving letter of credit (RLC) is a special letter of credit type which is structured in a way so that it revolves … Read More
TRANSFERRING BANK S LIABILITY UNDER TRANSFERRED LC QUERY Hi Mr. Old man, Could you give me a word of advice in this case? Details as follows: A transferable L/C is issued by bank A in favor of Ben 1 and Ben 1 transfer this LC to Ben 2 by MT720 through bank B (the bank is nominated as transfering bank in original LC). Ben 2 presents docs … Read More
TO ORDER BILL OF LADING AND ENDORSEMENT QUERY FROM POPBABI Sent To: Mr. Old Man B/L If L/C require B/L to order endorsed of Issuing Bank , it is synonymous with requirement on B/L to be endorsed by Shipper ? At that time, Consignee on B/L must be one of each cases: – to order – to order of shipper – blank – to bearer ——————————————– COMMENT … Read More
SURRENDERED BILL OF LADING QUERY FROM LINH DAN Thank you for answering my rather… annoying question the other day! I have another question. Recently, a customer submitted documents for payment by TTR, but the B/L was neither an original nor marked as a copy. On the B/L, there was also a note stating: “NO ORIGINAL B/L ISSUED. ORIGINAL B/L SURRENDERED IN SINGAPORE.” I don’t … Read More
ADDING CONFIRMATION TO AN LC ALREADY CONFIRMED QUESTION Hello, I need some help. Is it possible for another bank to add confirmation to an LC that has already been confirmed? In other words, can an LC have two open confirmations from two separate banks? Thank you in advance. Kind regards, Emsequeira ———– ANSWER Dear Emsequeira, In trade finance, almost anything is possible—provided the parties involved are willing … Read More