Shipment country is different from where actual exporter exist.

[TradeStd]

Dear experts.
I am new in letter of credit and need some opinion.
I have a situation, in which actual exporter is from UAE , LC is being open from PAKISTAN in favor of country UAE whereas the actual shipment is being done from country JAPAN. I need to know the complication of the translation on following points.
1. Who must be the shipper on bill of lading and on other documents , like commercial invoice, pl, co ? Keep in mind that country UAE will draw the draft to country PAKISTAN for payment.
2. Can country UAE get CO issued with goods originated as JAPAN ?
3. What if exporter on invoice , pl, co is from UAE but the bill of lading have shipper from country JAPAN ?
I need your help with some real world example.

[picant]

Hi Pal,

complications will depend on applicable laws. From l/c point of view we are in presence of a a normal transaction where the seller is not the goods producer. A part the invoice that must be issued by the beneficiary, other documents may show different shippers. In my Country Chamber of Commerce may
certify the origin of the goods produced in a different Country, but in your case Japanese Origin will remain. Probably your forwarder agent may help you more that a bank's clerk.
Other comments appreciated
Ciao

[TradeStd]

Hi Picant,
Thank you for your opinion.
Is it possible that seller from UAE via his forwarding agent in JAPAN get booking with shipping line and mark the shipper on BL under his own name? If YES, then I think , there won't be any problem to prepare the documents by the UAE seller under his own name ? Plz correct me if I am wrong here.
Here , I want to share some more facts that Seller from UAE will obtain the goods in JAPAN and clear payments to original supplier in JAPAN. After taking merchandise in custody at load port or probably in his own warehouse, he would demand LC from us. so I guess, we do not need to open transferable LC in his favor but, a simple LC can serve the purpose , right ?
Also , please help me to with an appropriate incoterm 2010 as the seller is suggesting me CIF shipment from JAPAN port to PAKISTAN port. ( it an be a RORO or container shipment).

[dinesh2476]

Hi Aamir,


Is it possible that seller from UAE via his forwarding agent in JAPAN get booking with shipping line and mark the shipper on BL under his own name? If YES, then I think , there won't be any problem to prepare the documents by the UAE seller under his own name ? Plz correct me if I am wrong here.

possible, the shipping company would prefer to generate the name on with whom terms and condition is set to handle cargo.


Here , I want to share some more facts that Seller from UAE will obtain the goods in JAPAN and clear payments to original supplier in JAPAN. After taking merchandise in custody at load port or probably in his own warehouse, he would demand LC from us. so I guess, we do not need to open transferable LC in his favor but, a simple LC can serve the purpose , right ?

Exactly. it depends on the contract with actual supplier and beneficiary. sometime they agree to go with AOP.

Also , please help me to with an appropriate incoterm 2010 as the seller is suggesting me CIF shipment from JAPAN port to PAKISTAN port. ( it an be a RORO or container shipment).

if it is containerized shipment then CIF is not a wise option.

Regards
Dinesh Kumar

[TradeStd]

Dear Dinesh Kumar,
Thank you for your feedback.

I still have some confusion as if the trading company get booking by nominating a forwarder , then who is going to use export license from Japan. Keep in mind that neither forwarder nor does trading company of UAE has Japan's export license.

Secondly , you are right as CIF is not a suitable Incoterm, but CFR is a best in my case.

[TradeStd]

Dear Dinesh kumar,
Thank you for your opinion.

Is it possible that seller from UAE via his forwarding agent in JAPAN get booking with shipping line and mark the shipper on BL under his own name?


I think , I am wrong on below case UAE trading agent won't have epxort license and forwarder too. Then I guess below case is not applicable unless we have a shipper originally from Japan itself. UAE trading partner can hide actual supplier by demanding a switch BL from agent or shipping line if I am not wrong here. Appreciate your comments on it.