I have a freind who are facing problem. He has shipped the goods within the validity of the LCs but suddenly the buyer saying they don't want the goods. What should he do?

Replying To  [parvez]:

Tell him to still claim on the LC.

He has honoured his obligation under the LC, and the Buyer;'s Bank must pay if the documents are submitted in order.

Replying to [parvez]: Dear Parvez, L/C is the safest terms of payment, The buyer is legally bound to adhere the conditions of L/C.
I don't think there is any need for worry. Ask you friend not to be panik and present the documents thru bank.

Replying to [parvez]:


If the buyer will go to rject the goods, there're two choices to estimate.
Firstly since the purchase has been dealt through a letter of credit it depends if buyer already paid up the commodity withdrawig so the documents from the bank.
In this case the situation is more complicated.
On the contrary if the documents are still lying at the bank , th buyer can request them to return back the dcuments to theshipper only after read very carefully if any specific clauses which can retain guilty the client.
In any case each time a cargo is refused at arrival destination acessories costs hve to be settled out or to he bank in case of documentation returning at port of loading or at port warehouse and clearing agent if the buyer decided to pay the goods and rejet the same later on.
In case of further informations pleaselet me know.

Winner

Replying to [parvez]:

Did your friend get the payment of the goods from the buyer or not ?'
Winner

Replying to [parvez]:

Simply speaking your money may be safe yet the reasons for refusal, the conditions of export acceptance, the validity of documents etc may be some of several factors that can cause problem. Your correspondence also holds importance in arbitration.
Care to verify credentials in advance is a safer way in business.

Hope this helps

Replying to [parvez]:
Hi ,

The matter is very serious. when u get the lc there is mentioned all term and condition on the lc throught buyer and seller with agree then the third part (Bank) is the guranter of the payment so if there is no any descrepency in the lc then u have to right to get the payment from bank and u can file a case against bank why he refusing to released the payment. It does'nt matter that buyer will accept the shipment or not.

if both parties are agreed for the term and condition of PI and lc then there is no excuse for payment.

tahir inayat

Replying to [parvez]:PLEASE INFORM WHY THE BUYER IS REFUSING TO TAKE THE GOODS WHAT THE REASON.
YOUR FRIEND HE MUST HAVE GOT HIS FUNDS BECAUSE HIS HAVING SHIIPING DOCUMENTS WITH HIMSELFES.& THE BANKS

Replying to [parvez]:Here is the question what is written on the Letter of Credit , meaning the Terms and Conditions. And then I can answer your question. this is very important want your buyer, your seller and the bank puts on this document.

Replying to [parvez]:well if the buyer is with his senses in doing so, check if the documents he/she gave is correct so as to know if he was not trying to defraud. then consult the bank, also, check if there is any damages in doing so. in ur own expense, consider and reply back to the buyer