Hello,
I am new to International Trade and wanted to understand the clauses that should be mentioned in an LC wherein the price is not fixed at the time of opening the LC but rather the price is linked to a certain Index and the prices will only be known in the future ?
For Example - Iron Ore is bought at a discount/premium to an index ?
Letter of Credit in an Index Linked Transaction
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Yash7
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TaiOanlan
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Re: Letter of Credit in an Index Linked Transaction
You can open a L/C with certain allowance on L/C value.
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picant
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Re: Letter of Credit in an Index Linked Transaction
Hi Pal,
Yes you may consider a wide tolerance in l/c amount and ask for a document showing the index used to
calculaed the goods value.
So you may require the price formula calculation and a certificate/document showing the index used, all
must be not in conflict as per art 14 d. UCP 600.
Other comments appreciated
Ciao
Yes you may consider a wide tolerance in l/c amount and ask for a document showing the index used to
calculaed the goods value.
So you may require the price formula calculation and a certificate/document showing the index used, all
must be not in conflict as per art 14 d. UCP 600.
Other comments appreciated
Ciao