Dear Friend,
Could you advise your opinion to the below points.
I am in deep trouble due to the non receipt of the payment from my Vendor. we are manufactruring and export the knitted hosiery garments from India. We are doing the busines with our Buyer in USA through the commision agency from taiwan with Letter of Credit mode . The Agent representative have in Local. doing the busines with buyer since 2006. The LC buyer opened to Agent bank and the agent bank transffered Lc to give us to our Bank. The payment also we recived the same method. we always sent the goods by sea port and recived the Forwarders cargo reciept instead of B/L and sent the same to Agent bank with necessary documents. Agent will forward the actual documents along with the original Fcr to the buyers bank. The busines was gine smoothly the same terms and condtion up to Aug-2011. now the last seaon we are unable to get the orders for Spring 12 season due to the price issue. but we are having the orders up to Sep 2011. we delivered all the goods as per their PO and Lc. last 4 P.O's (4 Lc's) payment non recived from buyers bank. and they have sent to the documents return along with our original FCR to our bank due to the buyers bank rejected the documents.But the buyer recived our goods and they are having our goods. they are told some very simply reasons for non payment. Now we are forced to put a case against them, at the time we discuss with our Lawyer regarding this issue she asked we cant do nothing because of the FCR is not valid and how you allowed to sent the goods without B/L. suppose you sent the B/L format they cant take the shipment without the original B/L. there is no way to suite a file against FCR. Is it true? is there no way to get my payment? can you help me ???
Non receipt of the payment against FCR
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sophyia8121
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nesarul
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non receipt of payment
Dear,
Although i am not at all an expert...i hreby strive to analysis the issue from my own understanding:
in any letter of credit there basically two legal contract:
1. the contract between the buyer and the the seller. and
2. The contract between the issuing bank and the beneficiary.
.
This two contrct is independent but interconnected with each other.
Now as far as no. 2 contract is concerned, yes i do agree that the beneficiary can release the goods without any intervention from the issuing bank since the transport document is FCR [not according to UCP-600). Issuing bank can reject the documents due to discrepancy appeared on the face of the document followed by returning the same to the presenter.
.
But since the goods has been released by the seller.. there must be a proof of it. Hence you can sue against the seller based on the contract i.e. contract no. 1
.
Regards
Nesar
Although i am not at all an expert...i hreby strive to analysis the issue from my own understanding:
in any letter of credit there basically two legal contract:
1. the contract between the buyer and the the seller. and
2. The contract between the issuing bank and the beneficiary.
.
This two contrct is independent but interconnected with each other.
Now as far as no. 2 contract is concerned, yes i do agree that the beneficiary can release the goods without any intervention from the issuing bank since the transport document is FCR [not according to UCP-600). Issuing bank can reject the documents due to discrepancy appeared on the face of the document followed by returning the same to the presenter.
.
But since the goods has been released by the seller.. there must be a proof of it. Hence you can sue against the seller based on the contract i.e. contract no. 1
.
Regards
Nesar