Letter of Credit Question

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Axoman
Posts: 1
Joined: Tue Jun 19, 2018 8:01 pm
First Name: Stan
Last Name: Johnson
Organization: Axometrics, Inc.
Filter: Two Plus Two =: 4
Location: Alabama

Letter of Credit Question

Post by Axoman » Tue Jun 19, 2018 8:19 pm

We sometimes sell to customers in China through a distributor located in Taiwan. In our most recent transaction we had a letter of credit with our distributor and they in turn had a letter of credit with the end customer. As a result, our distributor needed the Airway Bill to match their LOC and we needed the Airway Bill to match our LOC. Since the terms were Ex-Works our distributor was paying the freight company and they won out on the Airway Bill. We eventually got paid on our LOC, but we would like to avoid this situation in the future.

Any suggestions on how to handle this situation should it arise again?

Thanks in advance.

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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

I dare say....

Post by picant » Wed Jun 20, 2018 12:49 am

Hi Pal,

just to start a discussion I would ask for a House Airwaybill, so the forwarder may vary AWB details to be compliant with first and second credit.(back to back L/c.)
Other comments appreciated
Ciao

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