Let's say if your company is a trading company. Your company is buying goods from China and you would like to sell those goods to another country.

So the questions are:

1. Should the LC address to you if the goods are directly send from China to their country.

2. Will it be advisable to arrange the goods to be sent directly from the manufacturer to the 3rd party buyer (the trading company's buyer)?

Cheers!!

Replying to [amienleo]:
1. The LC can be addressed to you if you have made other arrangements to pay the Chinese Manufacturer, as you will need to get the Original B/L etc from the Chinese Manufacturer so you can claim on the LC. Otherwise you can also transfer the LC to the Chinese Manufacturer.
2. Unless you want to pay double freight and handling, the Goods should be sent directly to the end buyer. You can use a freight forwarder in between if you don't want the manufacturer to know who the buyer is.

Hope this helps

Thanks for the reply.

1. Can we just transfer the LC that is being sent to me to my Chinese Manufacturer, or i need to reissue another LC?

2. Do you mean that i can arrange my freight forwarder to send the goods to the destination.

Cheers!!

Replying to [grigo]

I think you must change this tiger at your profil , FOX is more siutable


Mohamad Alkady

Replying to [grigo]:

Heloo, i see Grigo's idea is very good,

But how 3rd party could pay for middleman? I mean which documens are important in the circumstance?
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. The LC can be addressed to you if you have made other arrangements to pay the Chinese Manufacturer, as you will need to get the Original B/L etc from the Chinese Manufacturer so you can claim on the LC. Otherwise you can also transfer the LC to the Chinese Manufacturer.
2. Unless you want to pay double freight and handling, the Goods should be sent directly to the end buyer. You can use a freight forwarder in between if you don't want the manufacturer to know who the buyer is.

Replying to [amienleo]:LC should always be in the favour of the exporter and should be arranged by the importer through his bank who is finally responsible for the payments to the exporter. The final consumer could be a different entity from the importer. Importer is just arranging the goods for his customer and simply playing a role of a trader.

There is also a provison in the internationally acceptable format of commercial invoice to mention the addresses of both importer and the final consignee seperately tthe two are different entities. Exporter will ship the consignement to the final destination as per LC's terms and send the export documents to the importer from whom the remmittance is to come. Importer will re-send the export documents to the final consignee, if it is required.

Payment between the importer and his customer (the final consumer)could be as per their mutual aggreements. It could be a wire transfer or through other Internationally acceptable banking instruments if their countries are different.