Best Trade Solution

DEAR SIR,

I HAVE A REVOLVE LC (5 TIMES REPEAT ORDER). I HAVE MADE FIRST SHIPMENT AND AWAITING THE ACCEPTANCE OF DOCS.
AT THE SAME TIME I HAVE COMPLETED PRODUCTION OF 2ND SHIPMENT. SHOULD I MOVE THE 2ND SHIPMENT WITHOUT ACCEPTANCE OF FIRST SHIPMENT?

IS THE REVOLVE LC OPERATIVE FOR 2ND SHIPMENT WITHOUT FIRST SHIPMENT'S ACCEPTANCE?
PLEASE REPLY IN DETAIL.

MANY THANKS IN ADVANCE AND BEST REGARDS
NADEEM

Is the revolvemnet automatic or non automatic ?
If the revolvements are automatic, there is no need for any
further amendment from the issuing bank. The issuing bank is
liable for the maximum amount that can be drawn under the
documentary credit covering all revolvements.
− A revolvement is considered non-automatic if the revolvements
are dependent upon receipt by the nominated bank of the
issuing bank’s authorisation for a further revolvement, by way
of amendment. In these circumstances, the issuing bank’s
maximum liability at any one time is the value of the single
revolvement.

Hi Pal,

IMHO, it depends on the wording of l/c, being the revolving l/c not regulated by the UCP.
The revolving clause may admit or prohibit some actions, be comulative or not, had a shipping schedule or given
periods, etc
Please insert more details.
Ciao

many thanks for your reply.

in 47A additional Conditions, it is stated:
THIS CREDIT IS TO REVOLVE FURTHER FOUR TIMES ON CUMULATIVE AND AUTOMATICALLY BASIS, MAKING TOTAL AMOUNT USD 539,280.00 (PLUS MINUS 5%)

in 45A description of goods:
ALL OTHER DETAILS FOR QUALITY, COLORS AND RELATED QUANTITY ARE ACCORDING TO BENEFICIARY PROFORMA INVOICE (5 PROFORMA INVOICE NUMBERS AND 5 PURCHASE ORDER NUMBERS)

Date of Shipment: 140515
in the LC there is no period mentioned for each shipment except date of shipment.

Deferred Payment Details: 120 days from BL Date.

My question is what does the meaning of : ON CUMULATIVE AND AUTOMATICALLY BASIS ?
Is it necessary to wait for the acceptance of first shipment and then the LC will be operative for next shipment ?
or we can make shipments without acceptance of previous bills?

Hi Pal,

IMHO automatically means that you may ship the goods for the next instaltment without waiting for an authorization.
Naturally if you ship the first lot of goods it is better to wait for acceptance by the nominated bank or issuing bank.
If the documents are rejected; or you will fill them accordingly to l/c terms or stop your supply, as you ship but money does not come!!!
Other comments appreciated
Ciao