dealing with a country where the risk of fraud/cheating is high

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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ammadalim
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dealing with a country where the risk of fraud/cheating is high

Post by ammadalim »

I am dealing with a country where the risk of fraud/cheating is high. So I choose to deal in LC but still, I am confused that what if I ship the goods and send the original document to the Issuing Bank Via my Advising Bank then what is the guarantee that if my customer back out, will my payment get stuck?? :|
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picant
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Re: dealing with a country where the risk of fraud/cheating is high

Post by picant »

Hi Pal,

l/c is a payment mean, the issuing bank has an international standing to defend, but Courts in the import Country may stop the transfer of funds to a beneficiary and you may support charges to recover your sums. But normally it happens if there are grounds(outside l/c ).
Your advising bank may inform you about the issuing bank, forwarder on the transport documents, that may be requested in l/c consigned to the order of issuing bank.
Other comments appreciated-ciao
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nesarul
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Re: dealing with a country where the risk of fraud/cheating is high

Post by nesarul »

Dear,
One way to mitigate the risk is to confirm your LC, where you are comfortable.
Best Regards
Nesar
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