Dear All, two months ago, we open an L/C to import some ore from philippines. However, as for shipment, we have amended the L/C for 3 times, but still not accomplished. The expiry date of L/C is 060920(today), but we are still waiting for our supplier to arrange. They said it hard to ship the goods from mine to port, they have to wait for flatboat to ship ores from mine to port first. Since, the supplier is the relative of our boss's friend, my boss agree to pay by T/T immediately upon receipt of the copy of B/L by fax. Therefore, I would like to know if we can use T/T to replace L/C.
Any infos from you will be highly appreciated.
Best regards,
Tony Han.

Quoting from [Tony Han]:


Dear All, two months ago, we open an L/C to import some ore from philippines. However, as for shipment, we have amended the L/C for 3 times, but still not accomplished. The expiry date of L/C is 060920(today), but we are still waiting for our supplier to arrange. They said it hard to ship the goods from mine to port, they have to wait for flatboat to ship ores from mine to port first. Since, the supplier is the relative of our boss's friend, my boss agree to pay by T/T immediately upon receipt of the copy of B/L by fax. Therefore, I would like to know if we can use T/T to replace L/C.

Any infos from you will be highly appreciated.

Best regards,

Tony Han.

Tony, sure you can.  The problem I would have is that the supplier entered into a contract and failed to supply.  How much did this affect your own business profits?  Friend or not I would expect that some arrangements be made in discounting the price from the original agreed upon price due to cost to open the L/C and loss of revenue.  Extending the expiry date 1 time is ok but to extend an additional 2 times is bad business and I would think bad for your business as well.  Supplier's should always have a handle on time it takes to ship their products.

Best regards,

Ranger

Replying to [Ranger]:
Dear Ranger,
Thanks for your kindly information!
To be honest, I also feel a little worried about it, since the shipment is delayed time and time again. I have also told my boss what I worried about, and should take care about it. However, we have paid USD10,000 to them for the sea freight, and 25% of total vaule for 2nd transaction(The 1st transaction is not shipped yet, my boss signed the contract of 2nd transaction last week). Since my boss went philippines to see the mine two weeks ago, which make him believe the supplier. However, my boss don't know English. He didn't see any licence or certificate of ownership for the mine.
What should we do now?
Best regards,
Tony Han.