Hello
I am preparing to open a documentary credit for the purpose of maintaining the marine locomotive worth 3 million euros. This cost includes the towing of the locomotive from the country of credit to another country where the ship maintenance dock and noted that the offer submitted to us shows the shipping condition is contrary to the terms of shipping customary and shows as follows:
The vessel is towed to Jordan and returned to the port of the ship owner without any reference to the policy
Insurance ensures the safety of the locomotive targeted for maintenance.
We hope you have a quick advice on this contract and would you like the L / C to request another shipping condition guaranteeing your rights against marine risks? Does he want to ask for a policy of insurance from the beneficiary? Can I request an inspection certificate from an inspection company? Is the process of hauling a ship to another ship requires a bill of lading or other documents?
please I am waiting your response soon.
Regards,,
an uncommon Letter of credit !!
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SANUSILAMIN
- Posts: 43
- Joined: Mon Sep 11, 2017 2:47 pm
- First Name: ALSUNOUSI
- Last Name: LAMEEN
- Organization: NOC, LIBYA
- Filter: Two Plus Two =: 4
- Location: LIBYA
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Re: an uncommon Letter of credit !!
Hi Pal,
IMHO, you have to open a Stand By Letter of Credit, where availment will be effected by a written declaration that applicant fails to pay beneficiary, accompany by possible supporting documents, all under UCP600. Not all transactions can be covered by documentary credit, it seems to me that no documents of title were supporting the transaction.
Let us know. Ciao
IMHO, you have to open a Stand By Letter of Credit, where availment will be effected by a written declaration that applicant fails to pay beneficiary, accompany by possible supporting documents, all under UCP600. Not all transactions can be covered by documentary credit, it seems to me that no documents of title were supporting the transaction.
Let us know. Ciao
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SANUSILAMIN
- Posts: 43
- Joined: Mon Sep 11, 2017 2:47 pm
- First Name: ALSUNOUSI
- Last Name: LAMEEN
- Organization: NOC, LIBYA
- Filter: Two Plus Two =: 4
- Location: LIBYA
Re: an uncommon Letter of credit !!
hi picant
I thank you for your interest and quick response and I will give you the full details of the transaction in terms of the terms of the contract imposed by the beneficiary
1. Description of the required materials or service: maintenance crane barge Benghazi .
2. Shipping condition: towing the barge from Benghazi terminal to Bizert, Tunisia and back .
3. Payment method as shown below:
a. 40% of LC against statement issued by beneficier certifying that the Engines and propaganda units have been ordered.
B.10% of LC against statement issued by repair yard and beneficing certifying that the crane barge Benghazi has been arrived at the yard of repair in Tunisia.
C.40% of LC against Test certificate issued of beneficiary confirming the satisfactory completion of all works activities.
E. 10% of LC against of invoice of arrival certificate signed by beneficiary and applicable confirming arrival of crane barge Benghazi in harbor of applicable. The above points explain the method of discharge of the amount of credit at the request of the beneficiary and note that the beneficiary did not provide any letter of guarantee for payments paid to him at each stage against the documents specified by order Is this opinion fair and guarantee my rights or must I ask for a letter of guarantee for those payments paid? Should I ask for an insurance policy? Can I hire a neutral (third party) inspector? Especially as I deal with a German inspection company with high experience used to inspect materials imported from abroad. I wish to provide advice and opinion that guarantees my rights.
Regards,,
I thank you for your interest and quick response and I will give you the full details of the transaction in terms of the terms of the contract imposed by the beneficiary
1. Description of the required materials or service: maintenance crane barge Benghazi .
2. Shipping condition: towing the barge from Benghazi terminal to Bizert, Tunisia and back .
3. Payment method as shown below:
a. 40% of LC against statement issued by beneficier certifying that the Engines and propaganda units have been ordered.
B.10% of LC against statement issued by repair yard and beneficing certifying that the crane barge Benghazi has been arrived at the yard of repair in Tunisia.
C.40% of LC against Test certificate issued of beneficiary confirming the satisfactory completion of all works activities.
E. 10% of LC against of invoice of arrival certificate signed by beneficiary and applicable confirming arrival of crane barge Benghazi in harbor of applicable. The above points explain the method of discharge of the amount of credit at the request of the beneficiary and note that the beneficiary did not provide any letter of guarantee for payments paid to him at each stage against the documents specified by order Is this opinion fair and guarantee my rights or must I ask for a letter of guarantee for those payments paid? Should I ask for an insurance policy? Can I hire a neutral (third party) inspector? Especially as I deal with a German inspection company with high experience used to inspect materials imported from abroad. I wish to provide advice and opinion that guarantees my rights.
Regards,,
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Re: an uncommon Letter of credit !!
Hi Pal,
a bank will advise you about the best possibility to issue a l/c covering the service.
The crane voyage may be insured against maritime risks (P & I) and you may
require an inspection by surveyor, at your costs.
That is all. Ciao
a bank will advise you about the best possibility to issue a l/c covering the service.
The crane voyage may be insured against maritime risks (P & I) and you may
require an inspection by surveyor, at your costs.
That is all. Ciao