Letter of Credit

Discussion in 'International Business' started by Felix9311033, Feb 22, 2018.

  1. Felix9311033

    Felix9311033 UKBF Newcomer Free Member

    1 0
    Hello, we are the exporter company and below payments terms are received from the importer overseas. Question is they will pay us 90 days after the draft is showed to the bank? Thank you.

    " All payments by the Distributor to Supplier under any firm Order shall be made in U.S.Dollar or any other currency agreed upon between two parties, free from any set- off, withholding or deduction, under an irrevocable and confirmed L/C in favor of Supplier having the clause of definite undertaking by an issuing bank for unconditional payment against a draft 90 days after sight. Such L/C shall be opened immediately upon effectuation of each firm Order, but before the shipping date of Products specified in said firm Order, with a prime bank acceptable to supplier which has adopted the Uniform Customs and Practices for Documentary Credits made by ICC. Further, such L/C shall allow partial shipments, if applicable, whereupon payments shall be effected for each partial shipment."
    Posted: Feb 22, 2018 By: Felix9311033 Member since: Feb 22, 2018
  2. Frankngai

    Frankngai UKBF Regular Free Member

    109 9
    Yes, correct. The payment should be made for each partial shipment. But pay more attention to the expiry date of L/C. The payment terms is 90 days after sight. You can only recive money 90 days after the negotiation bank received full documents.
    Posted: Mar 26, 2018 By: Frankngai Member since: Mar 9, 2012