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Can LC in USD be opened by Indian Agent?


25 October 2009 Parties :
A : Original Buyer ( From Maxico)
B : Manufacturer ( In Nepal)
C : Intermediate Buyer ( In India)

Facts :-
"B" has received order of 50K Garments from "C" with condition to dispatch the material to "A" at Maxico. Now "B" is asking for LC in USD as the shipment is being sent to Maxico. Can "C" open the LC in USD on "B"?

25 October 2009 Yes. C can open LC in USD on B.

25 October 2009 But "C" is saying that bank is denying to open LC in USD quoting the RBI Circulars.



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