Replying to [MikePTY-HK]:

I have to disagree with some of the points raised. The ONLY fully secure letter of credit is a confirmed LC. This is backed by the banks 100%. A normal irrevocable LC is ok however if you are selling for example to Vietnam, the Vn bank will usually stall and delay payment under the LC until after the goods arrive. It should always be remembered that the issusing bank is on the side of their customer, so hence a bank make double check the shipping documents and if even a slight error the documents will be returned to the shipper for amendment. I have had this happen with a Chinese Bank in HK. The buyer wanted to delay payment as the market price had gone down.

Replying to [crunchy]:The best type of LC is an irrevocable L/C. A confirmed L/C is one in which the bank has confirmed receipt of the LC and will pay the buyer. An LC is not a guarantee of payment, but a guarantee assuming the seller meets all the terms of the LC. If the seller does not meet the terms, or the wording on the submitted documents is not exact, the buyer can delay payment indefinitely. An irrevocable LC will be paid as long as the seller meets all the terms. If the seller does not agree with the terms or wording on the LC, request that the L/C be amended. Never accept a revocable LC as the buyer can terminate the sale at any time and the seller has no recourse.

Replying to [deenaboo]: About LC, everyone says its the safest way to send payment, but, if per example, the order is: 4000pcs MP4 total weight 10000 Kgs, and instead of to send the 4000pcs MP4 the seller send another cheaper merchandise that weights the same 10000Kgs (per example, silicon MP4 wear).

The AWB/HBL that will confirm shipping to the buyer will contain the the 4000pcs MP4 with the same weight.

Then, the bank will transfer the funds from LC to the seller, and when the buyer to get the items it will be another merchandise with so much less value.... so, is there a way to avoid it?

Thanks

Replying to [MikePTY-HK]:

Mr.mike,
thank you a lot for your nice sharing...
:)

best regards

Replying to [MikePTY-HK]:
That is really very good contribution for publicize L/C.
Thanks Cary on

Replying to [MikePTY-HK]:
Great job done by you. I think it is very useful for those who is trendy to work in advance payments(prepaid) through TT.

I think they should start from ( L/C at sight).

Replying to [MikePTY-HK]: PerfectPost

Replying to [MikePTY-HK]:Suppose that the person who received the goods were a liar and he received the goods and he didnot send to the bank that he received the goods? will the sender lose his money and his goods?

Replying to [MikePTY-HK]:
I have aquestion on LC payment.
Assume we accept the payment terms as 100% irrevocable LC at sight from our supplier , how can we assure that our supplier actuallu shipped out the actual requested goods ? Is there a way we can put into the LC to enforce this? Some of my friends experienced that the payment is by LC and when we received the goods, it is total dofferent in quality as requested / stated in the LC statement. Pls advise this. thanks!

Replying to [MikePTY-HK]: I have a slight problem here. Ok, it goes as below:-

I am a reseller in this deal.

My terms with the buyer are 5% * and the rest LC and my terms with the end seller will be anOperative Bank Guarantee/Stand By LC as payment guarantee and payment via swift wire transfer upon verifying and acceptance the goods.

So, what type of LC that the buyer will be issuing me so can use the LC to open an Operative Bank Guarantee/Stand By LC to the end seller and able to encash the 5% of the total LC value as downpayment of the deal?


Please advice ...........