Foreign letter of credit
This query is : Resolved
Prakash Musaddi
(Querist)
26 September 2012
we want to open a FLC where 90% of the equipment value is payable on presentation of Bill of Lading and 10% is payable upon presentation of commissioning certificate. How to draft the same in the LC terms and conditions.
Jagga Rao Malipeddi
(Expert)
28 September 2012
Negotiation of the Bills under the LC are restricted to 90% value of the invoice (equipment value). Include the follwing in the list of documents required:
An undertaking from the beneficiary that the copy of Bill of Landing is sent to the opener of LC directly evidencing shipment of the equipment.
The remaining 10% of the value of invoice (equipment) is payable on submission of commissioning certificate.
Document required:
Certificate from the opener's company certifying the commissioning of equipment to its satisfaction.
An undertaking from the beneficiary that the copy of Bill of Landing is sent to the opener of LC directly evidencing shipment of the equipment.
The remaining 10% of the value of invoice (equipment) is payable on submission of commissioning certificate.
Document required:
Certificate from the opener's company certifying the commissioning of equipment to its satisfaction.
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