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dealing with a country where the risk of fraud/cheating is high

Posted: Sat Feb 24, 2018 7:29 pm
by ammadalim
I am dealing with a country where the risk of fraud/cheating is high. So I choose to deal in LC but still, I am confused that what if I ship the goods and send the original document to the Issuing Bank Via my Advising Bank then what is the guarantee that if my customer back out, will my payment get stuck?? :|

Re: dealing with a country where the risk of fraud/cheating is high

Posted: Sun Feb 25, 2018 10:24 pm
by picant
Hi Pal,

l/c is a payment mean, the issuing bank has an international standing to defend, but Courts in the import Country may stop the transfer of funds to a beneficiary and you may support charges to recover your sums. But normally it happens if there are grounds(outside l/c ).
Your advising bank may inform you about the issuing bank, forwarder on the transport documents, that may be requested in l/c consigned to the order of issuing bank.
Other comments appreciated-ciao

Re: dealing with a country where the risk of fraud/cheating is high

Posted: Sat Mar 03, 2018 8:29 am
by nesarul
Dear,
One way to mitigate the risk is to confirm your LC, where you are comfortable.
Best Regards
Nesar