Dishonouring L/C
Posted: Sun Sep 26, 2010 1:11 am
Have a typical problem and we would be thankful to you for guidance. Our buyer is willing to open L/C for X amount (full invoice amount). They are going to import the items which requires approvals from the concerned ministries first. We need to send them the docs once they open the L/C and after approval from the concerned ministry and advise from the buyer we can start production and ship the goods.
Thus they want to open the L/C for X/2 amount(they do not want to block their money keeping with their bank) and after getting approval they want to open L/C for the rest Half amount which is X/2.
In case they fail to open the L/C for the rest Half amount which is X/2 after getting approval if we do not ship the goods then can we be penalize? Can any one advise us the suitable solution to the above problem?
Thus they want to open the L/C for X/2 amount(they do not want to block their money keeping with their bank) and after getting approval they want to open L/C for the rest Half amount which is X/2.
In case they fail to open the L/C for the rest Half amount which is X/2 after getting approval if we do not ship the goods then can we be penalize? Can any one advise us the suitable solution to the above problem?