Can Export LC Be Issued To One Country And Specifying Shipment From A Different Country?

[Tradebanker16]

Can an export Lc be issued to an exporter in one country and specifying shipment from a different country ?

For example the Lc is in favor of an American country and the goods are shipped from china

[picant]

Hi Pal,

non problems from UCP point of view and technical point of view, it is called indirect transit, direct transit is when the goods pass the State Territory without being imported.
From AML or KYC it may cause difficulties depending on the type of goods etc(embargoes)., not forgetting the rislk associated to exporter.
However traders play globally.
other comments appreciated.
Ciao

[Navi]

UCP not differentiate domestic LCs and foreign LCs as far as I know. Both applicant and beneficiary (as well as their banks) may be operating in the same country and shipment of goods may be from anywhere in the world.

But each country may have some regulations/limitations for such transactions other than UCP.

Regards

[RAKESHCH]

friend,

its very much possible ...and its quite common

eg benef in india goods exported from turkey to bangladesh. its called merchanting trade,only the docs will be processed in the benef country.

rakesh