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Dear Pals,
A proforma invoice includes following payment term:
"30% in advance before LC open and rest 70% in LC at sight"
Can we consider it as "Red Clause LC"?

Hi Pal,

no, the 30% will be paid outside the l/c. Red Clause means that the l/c will be open for 100% of PF o contract value and beneficiary may obtain a certain percentage by presenting a document stating that the advance will be used to buy(part) goods that will be shipped timely.The main problem is in which way the nominated bank will get funds to advance to l/c beneficiary and payment of interests.
In your case an advance payment bond may be required by the buyer!
Other comments appreciated.
Ciao

Thank you so much Picant!