This my first time importing garments. When the goods arrive, I need to know the quantity I receive is what I order and the fabric is the material I order.

If both conditions are met, then I will release the funds. So how do I formulate the terms on the LC?

Replying to [jadedev]:
Ask for pre-shipment inspection certificate from a company of your liking to be presented as part of shipping docs for negotiation/payment.

Regards

Replying to [spider man]:
That's an option but I rather insect when the goods arrive.

Replying to [jadedev]:
Then tell your supplier that you will issue lc in his favour but he has to issue bank guarantee in your favour. If he agrees to it, then you should instruct your bank to incorporate the following clause in lc
" L/C will become operative only upon the receipt of bank guarantee by applicant".
As soon as you receive bank guarantee, you approach your bank to make the LC operative as bank guarantee has been received. Your bank would do so.
Under this mechanism, you still have to pay before you inspect goods but you have the option to claim funds back if you are cheated.
Still, I am not sure if this is practically possible.
Regards

Quoting from [spider man]:


Replying to [jadedev]:

Then tell your supplier that you will issue lc in his favour but he has to issue bank guarantee in your favour. If he agrees to it, then you should instruct your bank to incorporate the following clause in lc

" L/C will become operative only upon the receipt of bank guarantee by applicant".

As soon as you receive bank guarantee, you approach your bank to make the LC operative as bank guarantee has been received. Your bank would do so.

Under this mechanism, you still have to pay before you inspect goods but you have the option to claim funds back if you are cheated.

Still, I am not sure if this is practically possible.

Regards

No seller in his right mind is going to issue a performance bond before an L/C is opened.

What they will do is issue a non-operative performance bond, that only opens upon receipt of the L/C.  Also the performance bond will cease to exist upon presentation of documents for payment.   It is the responsibility of the buyer to inspect the goods before shipment not after.  Even under Term draft L/C No seller would allow a buyer to call in a performance bond especially since they have already financed the goods for the buyer.

Ranger

Replying to [jadedev]:there's no such ways to make the L/C,
that is to inspect the goods with your own idea. this sure not workable.

There is a way is to indicate the terms on the L/C, that is " supplier
should forward the inspection report when negotiating". and this inspection report is issued by a third part, such like SGS or any
other inspection third party.

Usually, this is a good way for protecting you order.

Replying to [Ranger]: yes i do agree ranger,