Replying to [darkfox133]:No, buyer has to pay 100% advance/bond guarantee to the LC issuing bank at the time of opening a LC. Moreover, the ownership of the goods is transferred to the buyer by bank, ONLY after receiving full payment from the buyer and the receipt of valid documents from seller's advising bank.

So, your money is in safe hands

Replying to [MikePTY-HK]:

tx for the info i'm a new exporter

Replying to [MikePTY-HK]:
Really Really good job, I apreciat I cant explain that how much I am happy from you, Explaining so clearly once again good job thank you very much

VERY GOOD AND HELPFUL IM GLAD YOU SUPPLY US WITH THIS INFO!

Replying to [MikePTY-HK]:good job!

Replying to [MikePTY-HK]:

Great Post. Two further questions:

1. what is the technical difference between a "transferable" LC and a Back-to-back LC?
2. How does LC discounting work?

Regards
Kattan

Replying to [kattan]:

sorry guys. the answers are already there.
just had to look

http://resources.alibaba.com/topic/11015/Lc.htm

Replying to [MikePTY-HK]:


Thanks for big explanation of LC...

I was not able to find an answer on this question: "What happened when the buyer open container and after inspecting of merchandises some of items was of poor quality or not according to original contract, but issuing bank reimbursed the seller's bank and debited the buyer???

Seller got money!
Buyer didn't get what was according to contract!.

Replying to [chuks]: Great thank you!

very nice theory u outlined agree it should be but why then our advising bank need confirmation from buyers to pay us and in addition to this our bank ask us to put some collateral when we negotiate or ask payment. they must immediately pay us (seller) on submitting all doc?