Hello,
Would appreciate your comments on this.
A customer has made payment in advance which was paid via a proforma invoice of 30% of the cargo value and for the balance amount of 70% this is under an L/C.
How do we show this in the L/C?
Can we show this under point 47A and add an additional comment of as with the text as follows: "Invoice to show full value of the goods US$ 50,000.00 less advance payment made of US$ 15,000.00.
With regards to this prepayment received how would we show the drafts?
The L/C is at sight basis and will be confirmed and will be issued with the amount of the 70% of the cargo.
Regards
Advance payment under a proforma invoice & balance amount under an L/C
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Majeed
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picant
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Re: Advance payment under a proforma invoice & balance amount under an L/C
HI Pal,
yes, you may insert such clause in field 47,( adding paid outside the l/c)
However ISBP 745 C7 states "an invoice may indicate a deduction covering advance payment, discount etc
that is not stated in the credit".
Draft will follow the invoice net value.
Other comments appreciated.
Ciao
yes, you may insert such clause in field 47,( adding paid outside the l/c)
However ISBP 745 C7 states "an invoice may indicate a deduction covering advance payment, discount etc
that is not stated in the credit".
Draft will follow the invoice net value.
Other comments appreciated.
Ciao