Best Trade Solution

i found a LC issued by a local bank which says

"Canadian whole red lentils, quality robin, grade 2 or better, crop year 2008"

whats is better here in your opinion? does it allow the beneficiary to ship any quality?


regd

shahriar

Hi Pals,

I think that better means higher grade, high quality. We shall accept an invoice stating that Canadian Whole red lentils, quality robin is of grade 2, 3, 4, 5....., crop year 2008 and refuse if grade 1, 1,50, 1,75, 1,99.

Other comments appreciated

Ciao

dear picant

thanks for your input. but i think many people will say that they will infact accept 1 and refuse anything beyond 2. without a fair knowledge of concerned grading i think its really difficult to define better. besides what is better to the seller may not be better to the buyer. hence i think in this case better is a ambiguous term and anything and everything is possible. do you agree

regd
shahriar

Dear Shahria

I agree with you about the ambigous term of credit. I think:

+ As a Issuing bank, when issuing the LC, we must show what exactly goods which the Applicant want to take. May be grade 2 and grade 1 or something else.
If the LC showing in general term, we must check docs as presented. Because there are not any definitions of grade (up or down is better).

+ As a Negotiating bank, we should advise the beneficiary showing:
1. "Canadian whole red lentils, quality robin, grade 2 or better, crop year 2008" on their invoices (or other docs) to avoid risk.
2."Canadian whole red lentils, quality robin, grade 2, and grade 1,..., crop year 2008" on their invoices (or other docs) and then showing that grade 1,... is better than grade 2 as LC required to avoid risk.

Regards, :roll:

Hi Pals,

in effect it is hard to establish if the quality grade is going up or down; first quality is better than the second one; any industry has its own measurement system.
I remember gold bullion quoted 22 carats, but also Best 1, 2 or Worst 1, 2....
However, from L/C point of view it is necessary that invoice will state Red lentils, quality Robin, grade 2 or better , crop year 2008.

Ciao