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our customer opened the irrevocable, tranferable LC, Given the payment couldn't receive from buyer, i asked for add CONFIRMED to LC, but the buyer replied us they only work and open the Irrevocable , tranferable LC.
How can i do it? Accept the rule of buyer or keep my way?
Quoting from [zlong8677]:
our customer opened the irrevocable, tranferable LC, Given the payment couldn't receive from buyer, i asked for add CONFIRMED to LC, but the buyer replied us they only work and open the Irrevocable , tranferable LC. How can i do it? Accept the rule of buyer or keep my way?
Dear zlong, please not to hardly push the buyer, in case of he/she is a trading or reseller importer, trading coy. etc so it is no point to do so. more over if the buyer use a bank 's credit facility (loans) for purchasing/buying. So your understanding is needed.
Important think is to secure the payment (your benefit), go to your bank (negotiate bank)make sure that those issuing bank , opening bank and related advising bank, correspondence bank , especially is the paying bank. should clearly say that payment is available at ......by ..... with ..... requirements of ..(clausula # 1. 2. 3 and on ) ..and When or how long days (time) is need for paying the money .....where the documents have to go/send...and all every details that will not a potential for you to break a Waiver clausula !
So, if your bank able to collect and accept this l/c (not only get the fee ) why not ? go ahead ! although it is transferable one, to 2 or 3 banks involves no problem as long as you and your bank ( collecting bank) can get the payment at last. Ref : I ever handle an L/C open by a bank BCP - Cayman Island,, but payable at Amex Bank-Frankfurt -Germany, transferable at a bank in Luanda- Angola ! then the Problem is Amex do not have any branch office in our state, so we have to ask our bank to negotiate and be the advising bank !
Container was shipped to Luanda, collect payment to Germany, buyer from Lisbon !? the collecting/negotiae bank in other state before it came to our town ! but it is OK !
Quoting from [zlong8677]:
our customer opened the irrevocable, tranferable LC, Given the payment couldn't receive from buyer, i asked for add CONFIRMED to LC, but the buyer replied us they only work and open the Irrevocable , tranferable LC.
How can i do it? Accept the rule of buyer or keep my way?
here are the reason of why your buyer use transferable = just about Commission
see the topic /asking of "transferable L/C and our commission" by t4sgroup [EG] and answer by Catalyst [IN] and leechian [MY] .
Hope you will be more encourage and understand the situation, THX
Quoting from [zlong8677]:
our customer opened the irrevocable, tranferable LC, Given the payment couldn't receive from buyer, i asked for add CONFIRMED to LC, but the buyer replied us they only work and open the Irrevocable , tranferable LC.
How can i do it? Accept the rule of buyer or keep my way?
I am not able to understand the phrase "Given the payment couldn't receive from buyer". However, let me respond the best I can.
You generally need a 'confirmed' LC if you have genuine doubts about the issuing bank, the country where the issuing bank is and such like. If you don't, then there is no need to insist on a confirmed LC at the cost of losing your business.
I'd suggest that you go ahead with the transaction, and accept the irrevocable transferable LC.
I only assume that you know the buyer fairly well, and had done business with him a few times earlier (these need not influence your final choice, though. These are just my observations.).