Documents required for payment using L/C for trade under FOB
Post 62 of 92
Quoting from [herby]:
Replying to [kai1]: The only suggestion I have is that request an SGS inspection certioficate before paymant and shipping
Geoffrey
Who is the one suppose to pay for the SGS inspection?
Cheers!!![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif){kind=icon}
11 Apr 2007 08:56
Post 63 of 92
Replying to [kai1]:
Hi!
As I may see from the reading of the comments/reply for this issue I noticed somewhat incomplete understanding of FOB term which may lead You into troubles/benefits.
FOB (Free On Board) is not only Seeler's obliagation to deliver the goods to the port of loading and nothing else.
Please, kindly reffer to INCOTERMS 2000.
FOB means Seller's responsibility for:
1) To deliver cargo to the port of loading
2) To perform loading of the cargo to nominated vessel for its own account
3) To bear all and the whole risks before cargo is on board
4) To make customs clearance
5) To fulfill all export formalities, to get any and all licensec for export and to pay all and any charges, duties, taxes etc upto cargo is on board
6) To present to the Buyer documents evidencing shipment of the goods onto the board of the vessel nominated by the Buyer.
Bs/L to be issued by the seller's agents/forwarders at the port of loading and to be signed upon loading completion by the Master of the vessel or agents acting on behalf of the master or vessel owners.
For import LC B/L is quite a good document, but I'm afraid that most of sellers prefer to avoid this.
There is one main trouble for the Seller.
The clean Bs/L to be presented - as per UCP banks will not accept any B/L which has remarks in reg cargo or packing defective conditions.
Please, kindly belive me, but there is no any 1 kg of material which has no any remarks to be found by the master of the vessel or surveyors appointed by him (especially in metals' trading).
So, there is a big risk for the Seller to load the vessel and not to get clean shipping docs and to negotiate LC smoothly.
I'm keeping silence in reg such a dirty thing You may play having control above the master via owners and instructing him not to issue clean docs, i.e. w/o remarks.
That's why most of sellers prefer to work on CFR/CIF or CPT basis.
In Your case I would like to answer to yourself whether You trust Your seller, whether You trust Your seller's forwarders and whether Your bank trust undertakings of the forwarder's.
If, so then You may smoothly work on FCR (Forwarder's certificate of receipt) basis.
We, being sellers, have worked many times on this basis and never put our buyers into any troubles. That's why they accept such a scheme.
You may use the following clauses in LC in reg FCR:
Field 46A Docs required:
ORIGINAL FCR ( FORWARDERÂ’S CERTIFICATE OF RECEIPT ) ISSUED BY FORWARDING COMPANY AT THE PORT OF LOADING, MADE OUT TO APPLCANT (OR TO THE ORDER OF ISSUING BANK).
FCR TO SHOW THE PLACE OF STORAGE IN THE PORT OF LOADING.
FCR TO SHOW DETAILS OF CARGO DELIVERED AND TO STATE THAT:
+ GOODS HAVE ARRIVED TO THE PORT OF LOADING IN GOOD ORDER AND CONDITIONS
+ GOODS ARE HELD AT THE IRREVOCABLE DISPOSAL OF THE CONSIGNEE OR THEIR ORDER
+ GOODS ARE FREE FROM ENCUMBRANCES AND PROPRIETARIES OF ANY THIRD PARTY
+ GOODS ARE FREE FOR EXPORT
+ ALL COSTS UP TO FOB PORT OF LOADING ARE BEING PAID BY THE SUPPLIER
LATEST ISSUANCE DATE OF FCR: XX.YY.200Z.
Among of other the following additional conditions to be:
- Latest date of shipment (Field 44C) to be considered as the latest date of FCR issuance
- Docs to be presented within XX days after FCR issuance date
The scheme is working.
Good luck
Hi!
As I may see from the reading of the comments/reply for this issue I noticed somewhat incomplete understanding of FOB term which may lead You into troubles/benefits.
FOB (Free On Board) is not only Seeler's obliagation to deliver the goods to the port of loading and nothing else.
Please, kindly reffer to INCOTERMS 2000.
FOB means Seller's responsibility for:
1) To deliver cargo to the port of loading
2) To perform loading of the cargo to nominated vessel for its own account
3) To bear all and the whole risks before cargo is on board
4) To make customs clearance
5) To fulfill all export formalities, to get any and all licensec for export and to pay all and any charges, duties, taxes etc upto cargo is on board
6) To present to the Buyer documents evidencing shipment of the goods onto the board of the vessel nominated by the Buyer.
Bs/L to be issued by the seller's agents/forwarders at the port of loading and to be signed upon loading completion by the Master of the vessel or agents acting on behalf of the master or vessel owners.
For import LC B/L is quite a good document, but I'm afraid that most of sellers prefer to avoid this.
There is one main trouble for the Seller.
The clean Bs/L to be presented - as per UCP banks will not accept any B/L which has remarks in reg cargo or packing defective conditions.
Please, kindly belive me, but there is no any 1 kg of material which has no any remarks to be found by the master of the vessel or surveyors appointed by him (especially in metals' trading).
So, there is a big risk for the Seller to load the vessel and not to get clean shipping docs and to negotiate LC smoothly.
I'm keeping silence in reg such a dirty thing You may play having control above the master via owners and instructing him not to issue clean docs, i.e. w/o remarks.
That's why most of sellers prefer to work on CFR/CIF or CPT basis.
In Your case I would like to answer to yourself whether You trust Your seller, whether You trust Your seller's forwarders and whether Your bank trust undertakings of the forwarder's.
If, so then You may smoothly work on FCR (Forwarder's certificate of receipt) basis.
We, being sellers, have worked many times on this basis and never put our buyers into any troubles. That's why they accept such a scheme.
You may use the following clauses in LC in reg FCR:
Field 46A Docs required:
ORIGINAL FCR ( FORWARDERÂ’S CERTIFICATE OF RECEIPT ) ISSUED BY FORWARDING COMPANY AT THE PORT OF LOADING, MADE OUT TO APPLCANT (OR TO THE ORDER OF ISSUING BANK).
FCR TO SHOW THE PLACE OF STORAGE IN THE PORT OF LOADING.
FCR TO SHOW DETAILS OF CARGO DELIVERED AND TO STATE THAT:
+ GOODS HAVE ARRIVED TO THE PORT OF LOADING IN GOOD ORDER AND CONDITIONS
+ GOODS ARE HELD AT THE IRREVOCABLE DISPOSAL OF THE CONSIGNEE OR THEIR ORDER
+ GOODS ARE FREE FROM ENCUMBRANCES AND PROPRIETARIES OF ANY THIRD PARTY
+ GOODS ARE FREE FOR EXPORT
+ ALL COSTS UP TO FOB PORT OF LOADING ARE BEING PAID BY THE SUPPLIER
LATEST ISSUANCE DATE OF FCR: XX.YY.200Z.
Among of other the following additional conditions to be:
- Latest date of shipment (Field 44C) to be considered as the latest date of FCR issuance
- Docs to be presented within XX days after FCR issuance date
The scheme is working.
Good luck
15 Apr 2007 04:54
Post 64 of 92
Replying to [kai1]:
The most secured form to ensure the quality and quantity is to work on CIF term. Do not work on FOB term.
This is the soution
The most secured form to ensure the quality and quantity is to work on CIF term. Do not work on FOB term.
This is the soution
20 Apr 2007 06:05
Post 65 of 92
Replying to [amienleo]:I do agree to this also. This also secures the material.
20 Apr 2007 06:07
Post 66 of 92
Replying to [kai1]:
Your are right, BL is the document evidencing actual loading and shipment of cargo. Therefore, it applies to all port-to-port shipment (FAS, FOB, CFR, CIF, DES,DEQ).
The procedure is the same, the seller will prepare commercial documents, official documents, Insurance documents (CIF, DES, DEQ), transport document (B/L) and other documents required under the LC. Subsequently, he will submit them to his bank. His bank will send the documents to the Issuing Bank. Issuing Bank will forward to you.
Your are right, BL is the document evidencing actual loading and shipment of cargo. Therefore, it applies to all port-to-port shipment (FAS, FOB, CFR, CIF, DES,DEQ).
The procedure is the same, the seller will prepare commercial documents, official documents, Insurance documents (CIF, DES, DEQ), transport document (B/L) and other documents required under the LC. Subsequently, he will submit them to his bank. His bank will send the documents to the Issuing Bank. Issuing Bank will forward to you.
23 Apr 2007 02:53
Post 67 of 92
Replying to [kai1]:
the copy of B/L, C/O, your seller can get them from your carrier or freight forwarder. It's easy.
As a freight forwarder in the third part logistic, we will consider both buyer's and seller's benefits.
the copy of B/L, C/O, your seller can get them from your carrier or freight forwarder. It's easy.
As a freight forwarder in the third part logistic, we will consider both buyer's and seller's benefits.
24 Apr 2007 02:08
Post 68 of 92
Replying to [kai1]: dear, the simple is to appoint a freight forwarders & put the clause in L/C to nominate your freight forwarders loacted in exporting country.
Also put the dox clause in the L/C, showing that full set of original BL issued by so & so company (it is your freight forwarders' name), freight term as collect basis.
The question is how you will arrange freight forwarders from that exporting country. Very simple you can obtain such services from your country's forwarders or clearing agent to whom you are dealing since long. Almost every freight forwardes is having his own network around the world.
By applying this you woulb be in 100% control on your cargo stage by stage.
best regards
Bashir
Also put the dox clause in the L/C, showing that full set of original BL issued by so & so company (it is your freight forwarders' name), freight term as collect basis.
The question is how you will arrange freight forwarders from that exporting country. Very simple you can obtain such services from your country's forwarders or clearing agent to whom you are dealing since long. Almost every freight forwardes is having his own network around the world.
By applying this you woulb be in 100% control on your cargo stage by stage.
best regards
Bashir
24 Apr 2007 04:32
Post 69 of 92
Replying to [kai1]:
Dear Sir,
Let the consignment be on CIF, CFR basis or on FOB basis, the only main and important proof of successful shipment is the BL, you can ask the seller to send the copy of BL as soon as he received the same after the ship has left the port which will work as the Open Proof of the shipment. It is true that you have to bear the freight as in case of FOB it your material is Free on Board for shipment and the consignee have to bear the freight of the shipment.
Any thing else would you like know, please feel free to contact us.
Regards
Jaggi Mangaliya (TM Please)
Dear Sir,
Let the consignment be on CIF, CFR basis or on FOB basis, the only main and important proof of successful shipment is the BL, you can ask the seller to send the copy of BL as soon as he received the same after the ship has left the port which will work as the Open Proof of the shipment. It is true that you have to bear the freight as in case of FOB it your material is Free on Board for shipment and the consignee have to bear the freight of the shipment.
Any thing else would you like know, please feel free to contact us.
Regards
Jaggi Mangaliya (TM Please)
28 Apr 2007 04:48
Post 70 of 92
Replying to [kai1]:
Hi Kai.You could ask your bank to send a letter of credit. This ensures that your payment is not released until you receive your shipment. Once you receive, you inform your bank and they release the money.
Regards
Hi Kai.You could ask your bank to send a letter of credit. This ensures that your payment is not released until you receive your shipment. Once you receive, you inform your bank and they release the money.
Regards
20 May 2007 02:28
Post 71 of 92
Replying to [kai1]: Hi Kai1 ...
May we ask where may we obtain free forms to conduct this Import / Export business as we are recent to the Site and still only a Free Memeber hope that we can make sales to generate enough income NET to make th grade to upgrade our presence with Premium Membership and Trust P *... Alibaba.com is the best place for business minded people to gather and get the gathering DONE !
Thanks ,... (Read the posting rules....... NO email addy's etc. Mod)
Contracts ... Buy Sell agreements
Financial Services... service for Fee agreements
ICC form 500
ICC form others that are used to mute the sounds...
the forms that you mentioned ... L / C and LOI , CIF and BCL
ICPO Commission payment order ...
How do we ask for all manners and fiat' papers to be on the letterhead as we have asked from many posted businesses here in Alibaba.com but because we are merely a Free Member the majority of business ... we are swept away and discarded to the recepticle. Thought of as a crime of Passion or SPAMED... we are trying to make good the presence here in Alibaba.com and give as much support as we can and still hope for sale but having the right forms makes and breaks any business in looking professional,
I am not crying or looking for a hnd - out ... kai1 just a hand .
Thanks
Shay McDowell - Trade Chaplin ,... WE MARRY YOU ! ! !
May we ask where may we obtain free forms to conduct this Import / Export business as we are recent to the Site and still only a Free Memeber hope that we can make sales to generate enough income NET to make th grade to upgrade our presence with Premium Membership and Trust P *... Alibaba.com is the best place for business minded people to gather and get the gathering DONE !
Thanks ,... (Read the posting rules....... NO email addy's etc. Mod)
Contracts ... Buy Sell agreements
Financial Services... service for Fee agreements
ICC form 500
ICC form others that are used to mute the sounds...
the forms that you mentioned ... L / C and LOI , CIF and BCL
ICPO Commission payment order ...
How do we ask for all manners and fiat' papers to be on the letterhead as we have asked from many posted businesses here in Alibaba.com but because we are merely a Free Member the majority of business ... we are swept away and discarded to the recepticle. Thought of as a crime of Passion or SPAMED... we are trying to make good the presence here in Alibaba.com and give as much support as we can and still hope for sale but having the right forms makes and breaks any business in looking professional,
I am not crying or looking for a hnd - out ... kai1 just a hand .
Thanks
Shay McDowell - Trade Chaplin ,... WE MARRY YOU ! ! !
20 May 2007 14:48