Can LC in USD be opened by Indian Agent?
This query is : Open
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"?
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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