L/C & Contract Question, PLEASE HELP ME......
Post 1 of 20
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Hi, guys... i need some expert to answer my question.
Before i ask some questions, i need to introduce myself.
My name is Budy, i'm a supplier for frozen soft shell crab, now i got my first buyer from vietnam, and we all agree for prices, packing, payment, etc.
My buyer want to make payment with L/C, and this is my first time deal with it. and here is the email to me :
There are some things you must prepare and let me know to open L/C for you:
1. Name, address and banking details of the company which stands for you to export.
2. Proforma Invoice under that company's name for me to open L/C (Product name: FROZEN RAW MATERIALS OF WHOLE ROUND OF SOFT SHELL CRAB )
3. Contract with my company signed by the above mentioned company to open L/C.
Your attention is appreciated.
* In the L/C I'll indicate all needed docs. Contact me if you need more information.
Can anyone help me, please......
1. I know the first one, i have name. address, and banking detail.
the rest i dunno.
2. What is proforma invoice anyway, what is inside proforma invoice, can anyone give me more detail ?
3. The contract. who supposed to be make a contract ? A BUYER OR SELLER ? What is supposed to be inside the contract ?
I'm very gladly if someone help me. I need the EXPERT one to help me.
THANKS A MILLION
BUDY HARTONO
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04 Mar 2008 07:38
Post 2 of 20
Quoting from [budy]:
Hi, guys... i need some expert to answer my question.
Before i ask some questions, i need to introduce myself.
My name is Budy, i'm a supplier for frozen soft shell crab, now i got my first buyer from vietnam, and we all agree for prices, packing, payment, etc.
My buyer want to make payment with L/C, and this is my first time deal with it. and here is the email to me :
There are some things you must prepare and let me know to open L/C for you:
1. Name, address and banking details of the company which stands for you to export.
2. Proforma Invoice under that company's name for me to open L/C (Product name: FROZEN RAW MATERIALS OF WHOLE ROUND OF SOFT SHELL CRAB )
3. Contract with my company signed by the above mentioned company to open L/C.
Your attention is appreciated.
* In the L/C I'll indicate all needed docs. Contact me if you need more information.
Can anyone help me, please......
1. I know the first one, i have name. address, and banking detail.
the rest i dunno.
2. What is proforma invoice anyway, what is inside proforma invoice, can anyone give me more detail ?
3. The contract. who supposed to be make a contract ? A BUYER OR SELLER ? What is supposed to be inside the contract ?
I'm very gladly if someone help me. I need the EXPERT one to help me.
THANKS A MILLION
BUDY HARTONO
2. What is proforma invoice anyway, what is inside proforma invoice, can anyone give me more detail ?
Proforma invoice is an invoice issued by the seller to the buyer before delivery of the goods. Commercial Invoice is an invoice issued by the seller to the buyer after the goods are delivered. In other words, proforma invoice is issued in advance prior to making a delivery by the seller.The details of both, proforma invoice and commercial invoice are the same, that is the description of the goods or services. Inyour case, FROZEN RAW MATERIALS OF WHOLE ROUND OF SOFT SHELL CRAB.
3. The contract. who supposed to be make a contract ? A BUYER OR SELLER ? What is supposed to be inside the contract ?
A sales contract is basically an agreement of selling and purchasing between two parties. it can be prepared by the seller or the buyer. It may be 2 pages, 4 pages or more. But a simple sales contract can be in the form of a proforma invoice. Other than the description of the goods or services, it also contains method of payment, amount, quantity, grade and other related information concerning the goods or services. However, you should first find out from your buyer should he requires any specific form of agreement or contract.
04 Mar 2008 19:24
Post 3 of 20
Quoting from [budy]:
Buddy, more info to come but I need to know if you are the seller, broker or the agent for this deal as it will be detrimental in establishing the L/C properly. It will also help the other member who are knowlegeable in L/C's help you along as well.
Ranger
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04 Mar 2008 23:28
Post 4 of 20
Replying to [budy]:proforma invoice is similar as commercial invoice. in it, u need list the details about thee goods your customer want, like item, packing, unit price, amount etc.
while contract is for both parts to definite the sale & buy relationship. it must be signed byboth parties.
while contract is for both parts to definite the sale & buy relationship. it must be signed byboth parties.
04 Mar 2008 23:59
Post 5 of 20
Replying to [budy]:
haha,![[em2]](http://img.alibaba.com/images/eng/style/icon/emoticons_laugh.gif)
, Learn more here and from these experts, be careful and good luck!
haha,
, Learn more here and from these experts, be careful and good luck!
05 Mar 2008 01:19
Post 6 of 20
Replying to [budy]:
PROFORMA INVOICE IS PREPARED BY SELLER, IT IS JUST LIKE COMMERCIAL INVOICE WITH SOME DIFFERENCES, YOU HAVE TO MENTIONED ALL DETAILS OF GOODS, PRICE, CONDITIONS ETC.
CONTRACT
IT IS ALSO CALLED SALE CONTRACT, IT IS ALSO PRODUCED BY SELLER AND AT BOTTOM SELLER SIGNS IT AND KEEP SPACE FOR BUYER SIGNATURE, WHEN BUYER SIGN IT IS CALLED CONTACT. IT CONTAINS ALL AND FULL DETAILS OF GOODS, DEALS, CONDITIONS, SHIPMENTS, DELIVERY ETC ETC
BEFORE MAKING SHIPMENT YOU MUST CARE, FIRST RECEIVE THE LC READ IT CAREFULLY AND CONSULT WITH YOUR BANKER THAT IS THEIR ANY CONDITION OF L/C WHCIH YOU COULD NOT FULFIL, IT MAY RESULT IN SHAPE OF DISCREPANCY AND YOU MAY PENALIZED BY BUYER. SO READ AND CONSULT WITH YOUR BANKER THEN MAKE SHIPMENT AFTER FULL SATISFACTION.
ANOTHER WAY IS TO ASK YOUR BANK TO CHECK THE CREDIBILITY OF BUYER THROUGH BANKING CHANNEL, THEY WILL CHARGE YOU THEIR FEE AND ASK THE BUYER BANK TO GIVE CREDIT REPORT.
PROFORMA INVOICE IS PREPARED BY SELLER, IT IS JUST LIKE COMMERCIAL INVOICE WITH SOME DIFFERENCES, YOU HAVE TO MENTIONED ALL DETAILS OF GOODS, PRICE, CONDITIONS ETC.
CONTRACT
IT IS ALSO CALLED SALE CONTRACT, IT IS ALSO PRODUCED BY SELLER AND AT BOTTOM SELLER SIGNS IT AND KEEP SPACE FOR BUYER SIGNATURE, WHEN BUYER SIGN IT IS CALLED CONTACT. IT CONTAINS ALL AND FULL DETAILS OF GOODS, DEALS, CONDITIONS, SHIPMENTS, DELIVERY ETC ETC
BEFORE MAKING SHIPMENT YOU MUST CARE, FIRST RECEIVE THE LC READ IT CAREFULLY AND CONSULT WITH YOUR BANKER THAT IS THEIR ANY CONDITION OF L/C WHCIH YOU COULD NOT FULFIL, IT MAY RESULT IN SHAPE OF DISCREPANCY AND YOU MAY PENALIZED BY BUYER. SO READ AND CONSULT WITH YOUR BANKER THEN MAKE SHIPMENT AFTER FULL SATISFACTION.
ANOTHER WAY IS TO ASK YOUR BANK TO CHECK THE CREDIBILITY OF BUYER THROUGH BANKING CHANNEL, THEY WILL CHARGE YOU THEIR FEE AND ASK THE BUYER BANK TO GIVE CREDIT REPORT.
05 Mar 2008 02:49
Post 7 of 20
Replying to [budy]:
LC means when you want to import consignment through the Bank in your country from other country best and possible to make the payment to bank and bank give you details about your import that is called LC if you have good relation with Bank then Bank can facilitate you by taking 20/25% advance, when your desire consignment reached at you country Port then Bank will release your Shipping Documents by taking full payment.
LC means when you want to import consignment through the Bank in your country from other country best and possible to make the payment to bank and bank give you details about your import that is called LC if you have good relation with Bank then Bank can facilitate you by taking 20/25% advance, when your desire consignment reached at you country Port then Bank will release your Shipping Documents by taking full payment.
05 Mar 2008 05:11
Post 8 of 20
Replying to [budy]:
Dear it is very good business if your client oppening the LC, you give him your Bank name for LC. then your money is safe in your Bank, when you will produced the shipping documents to the Bank ,he will release your LC amount. LC is the best opption in Business. But send best export goods, dont hankypanky in the export consignment for regular business. you are lucky
Dear it is very good business if your client oppening the LC, you give him your Bank name for LC. then your money is safe in your Bank, when you will produced the shipping documents to the Bank ,he will release your LC amount. LC is the best opption in Business. But send best export goods, dont hankypanky in the export consignment for regular business. you are lucky
05 Mar 2008 05:22
Post 9 of 20
Replying to [budy]:The stages of the letter of credit
Buyer and seller agree terms, including means of transport, period of credit offered (if any), latest date of shipment, Incoterm to be used
Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing, and may require cash cover and/or reduction of other lending limits
Issuing bank issues L/C, sending it to the Advising bank by airmail or (more commonly) electronic means such as telex or SWIFT
Advising bank establishes authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary). Advising bank MAY confirm L/C, i.e. add its own payment undertaking
Seller should now check that L/C matches commercial agreement, and that all its terms and conditions can be satisfied, (e.g. all documents can be obtained in good time.) If there is anything that may cause a problem, an AMENDMENT must be requested.
Seller ships the goods, then assembles the documents called for the L/C (invoice, transport document etc.) Before presenting the documents to the bank, the seller should check them for discrepancies with the L/C, and correct the documents where necessary.
The documents are presented to a bank, often the Advising bank. The Advising bank checks the documents against the L/C. If the documents are compliant, the bank pays the seller and forwards the documents to the Issuing bank
The Issuing bank now checks the documents itself. If they are in order (and it is a sight L/C), it reimburses the seller's bank immediately
The Issuing bank debits the buyer and releases the documents (including transport document), so that the buyer can claim the goods from the carrier.
What is proforma invoice anyway, what is inside proforma invoice, can anyone give me more detail ?
The Proforma invoice is a legal document between the supplier and the customer to describe the details of a certain commodity. The Proforma invoice is needed for all international non document shipments, and is used for the customs in the country of destination to determine the customs value.
Buyer and seller agree terms, including means of transport, period of credit offered (if any), latest date of shipment, Incoterm to be used
Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing, and may require cash cover and/or reduction of other lending limits
Issuing bank issues L/C, sending it to the Advising bank by airmail or (more commonly) electronic means such as telex or SWIFT
Advising bank establishes authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary). Advising bank MAY confirm L/C, i.e. add its own payment undertaking
Seller should now check that L/C matches commercial agreement, and that all its terms and conditions can be satisfied, (e.g. all documents can be obtained in good time.) If there is anything that may cause a problem, an AMENDMENT must be requested.
Seller ships the goods, then assembles the documents called for the L/C (invoice, transport document etc.) Before presenting the documents to the bank, the seller should check them for discrepancies with the L/C, and correct the documents where necessary.
The documents are presented to a bank, often the Advising bank. The Advising bank checks the documents against the L/C. If the documents are compliant, the bank pays the seller and forwards the documents to the Issuing bank
The Issuing bank now checks the documents itself. If they are in order (and it is a sight L/C), it reimburses the seller's bank immediately
The Issuing bank debits the buyer and releases the documents (including transport document), so that the buyer can claim the goods from the carrier.
What is proforma invoice anyway, what is inside proforma invoice, can anyone give me more detail ?
The Proforma invoice is a legal document between the supplier and the customer to describe the details of a certain commodity. The Proforma invoice is needed for all international non document shipments, and is used for the customs in the country of destination to determine the customs value.
05 Mar 2008 06:10
Post 10 of 20
Replying to [budy]:You need a lot of help and probably should work through an exporter. This is complicated stuff.
As a freight forwarder for over 30 years and an exporter, you can call me at 510-787 6857 and we can go over this.
Best, Paula La Pointe
As a freight forwarder for over 30 years and an exporter, you can call me at 510-787 6857 and we can go over this.
Best, Paula La Pointe
05 Mar 2008 08:54
Post 11 of 20
Replying to [budy]:
from your questions it appears you are selling to Vietnam. The first question you need to know is which Vietnam Bank is going to open the LC, and it must be one of the top 2 or 3 in Vietnam. For most sales to Vietnam you cannot get a confirmed LC, and herein lies the problem. If the shipment time of your goods from load port to destination is short, you will not get paid until after the goods have been inspected by the buyer at discharge port. If a long shipment period this may also happen as many Vn banks delay payment until the goods actually arrive in order to help their customers.
from your questions it appears you are selling to Vietnam. The first question you need to know is which Vietnam Bank is going to open the LC, and it must be one of the top 2 or 3 in Vietnam. For most sales to Vietnam you cannot get a confirmed LC, and herein lies the problem. If the shipment time of your goods from load port to destination is short, you will not get paid until after the goods have been inspected by the buyer at discharge port. If a long shipment period this may also happen as many Vn banks delay payment until the goods actually arrive in order to help their customers.
06 Mar 2008 01:45