I am a new Person in the feild of Exports.recently I have been contacted by a overseas Buyer for my products.rates have been finalised,
he is based in Germany and asked me to ship certain agro goods to some African Country.He has agreed to open the LC in our favour.
Now this is my first shipment so cluld you please guide me as to how should I proceed with him? What clauses should I add in it? What would be a safe route for both of us?Can I get some part payments from the bank periodically or after a ceratin time?
PLEASE GUIDE ME....THANKS A MILLION !!!!
Quoting from [dreamz]:
Hi,
I am a new Person in the feild of Exports.recently I have been contacted by a overseas Buyer for my products.rates have been finalised,
he is based in Germany and asked me to ship certain agro goods to some African Country.He has agreed to open the LC in our favour.
Now this is my first shipment so cluld you please guide me as to how should I proceed with him? What clauses should I add in it? What would be a safe route for both of us?Can I get some part payments from the bank periodically or after a ceratin time?
PLEASE GUIDE ME....THANKS A MILLION !!!!
I think your of the wrong oppinion. You can request that when the business has their bank open the DLC at sight or by acceptance that they include things like advance payment via a red clause but you yourself can not make changes to an L/C. You should consult with your banks trade department as well you should read all you can about this type of payment including "red clause"& "Green clause" Also take a look at this post.
http://resources.alibaba.com/topic/250866/Partial_Shipments.htm
Ranger
Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos...
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In addition to what Ranger has said, let me add this:
(a) You can add clauses or terms suitable to you, but only by writing to the buyer, who in turn will ask his bank to add them to the LC - if they agree.
(b) Make sure that the LC is issued by a bank acceptable to you. Preferably an internationally known reputed bank (not a local, privately owned bank in that country).
you should get the following clause incorprated in LC for further protection
" All discrepancies in the documents will be acceptable except description of goods, unit price, quantity, latest shipment date and validity of LC".
Regards
Replying to [Spider Man]: both you and catalyst raised good points, so near the top of this page please claim 10 points from me by responding to the post.
Ranger
Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos...
More