1. Bulk L/C ...
2. Master L/C
What kind of L/C is it ? when does such instrument been using ? what purpose ?
thanks for joint in and participating !
Quoting from [Oneuni]:
Among many kinds of L/C version, there are :
1. Bulk L/C ...
2. Master L/C
What kind of L/C is it ? when does such instrument been using ? what purpose ?
thanks for joint in and participating !
Tika, your going to have to school us all because you refer to a Bulk L/C and no where in the UCP nor ICC rules is there any inference to anything known as a Bulk L/C.
A Master L/C is nothing more nor less than the original document issued by the buyers bank. However, Master terminolgy is used in correlation to Transferable and Back to Back Letters of Credit, where despite any credit that may issued against the Master/Original all documents must comply to the Master L/C for the negotiation by the named bank.
Bulk L/C is actually a trader term only used by buyers and sellers of commodities bought in bulk such as Oil, LNG, Ore's, Grain's, ect....
Ranger
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Quoting from [Oneuni]:Thanks Mr Ranger for the explaining the Master L/C,
Among many kinds of L/C version, there are :
1. Bulk L/C ...
2. Master L/C
What kind of L/C is it ? when does such instrument been using ? what purpose ?
thanks for joint in and participating !
So in simply words, the master l/c is the origin l/c from buyer end user.
This been using when the trade are involving 3rd party as mediator/agent etc that not go
direct to shipper/supplier/producer. whereas the 3rd party will open another l/c for the producer or supplier base on exactly the mostly requirement (clauses) in the origin l/c. except the value.
The purpose is to back up the mediator/buying agent and or a standing payment of what the goods being ordered/bought from buyer to be made/produced/delivery by exporter.
for some reason of : No diplomatic link between buyer & seller, Communication-matter, liason or agency matter, etc .. that somehow it need via 3rd party
rgrds