Invoice (Legalized)
Post 1 of 2
We are from India.We need to export to Saudi Arabia. In the Letter of credit, the documents required clause stating that " Invoice (Legalized) , Certificate of Origin (Legalized) required. What is the meaning of Legalization of Invoice. How to get it. Please advice me.
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01 Aug 2007 02:09
Post 2 of 2
Replying to [Murty]:
Hi!
This is usual requrements for arab countries.
Having no such legalised docs they will pay penalties from 0.2% to 1% of the invoice value + abt 30USD for each cert of origin while making import.
IMHO, these docs to be legalized by the U.A.E. Embassy/Consulate.
AAAA
=====
You've not mentioned whether LC states by what authorities these docs to be lagalized.
If there is no mentioning in LC for such a authority then You have somewhat flexibility. Ask Your bankers by whom these docs to be legalized to be consistent with LC terms.
BBBB
====
If there is stated the exact authority then:
1/ Check whether appropriate authorities are available at Your country
2/ Contact them in order to learn the scheme of such legalization
If You will not obtain suitable legalization at Your country then You should re-negotiate LC terms with Your client and if those % of penalties are acceptable as price reducing then to make an amendment to LC.
CCCC
=====
We've got the same situations for several times.
In one case we reduced the price level to cover those penalties while import by means of contract before LC issuance.
In other case we've got this after LC issuance and were faced to accept the following LC condition being the same reducing of price/amount:
IN CASE LEGALIZATONS OF DOCUMENTS IS NOT CARRIED OUT THE NEGOTIATION'S BANK'S COVERING SCHEDULE MUST EVIDENCE A DEDUCTION OF _____% OF THE INVOICE VALUE AND USD28 FOR EACH CERTIFICATE OF ORIGIN BEING LEGALISATION CHARGES. IN SUCH CASE NON LEGALIZED DOCS ARE ACCEPTABLE.
DDDD
=====
While You'll not investigate this question and will not come into agreement with the bank/customer it will be difficult to utilize such an LC.
Good luck
Hi!
This is usual requrements for arab countries.
Having no such legalised docs they will pay penalties from 0.2% to 1% of the invoice value + abt 30USD for each cert of origin while making import.
IMHO, these docs to be legalized by the U.A.E. Embassy/Consulate.
AAAA
=====
You've not mentioned whether LC states by what authorities these docs to be lagalized.
If there is no mentioning in LC for such a authority then You have somewhat flexibility. Ask Your bankers by whom these docs to be legalized to be consistent with LC terms.
BBBB
====
If there is stated the exact authority then:
1/ Check whether appropriate authorities are available at Your country
2/ Contact them in order to learn the scheme of such legalization
If You will not obtain suitable legalization at Your country then You should re-negotiate LC terms with Your client and if those % of penalties are acceptable as price reducing then to make an amendment to LC.
CCCC
=====
We've got the same situations for several times.
In one case we reduced the price level to cover those penalties while import by means of contract before LC issuance.
In other case we've got this after LC issuance and were faced to accept the following LC condition being the same reducing of price/amount:
IN CASE LEGALIZATONS OF DOCUMENTS IS NOT CARRIED OUT THE NEGOTIATION'S BANK'S COVERING SCHEDULE MUST EVIDENCE A DEDUCTION OF _____% OF THE INVOICE VALUE AND USD28 FOR EACH CERTIFICATE OF ORIGIN BEING LEGALISATION CHARGES. IN SUCH CASE NON LEGALIZED DOCS ARE ACCEPTABLE.
DDDD
=====
While You'll not investigate this question and will not come into agreement with the bank/customer it will be difficult to utilize such an LC.
Good luck
01 Aug 2007 03:19
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