Export lc negotiation fcr

1839 views 3 replies

ashwin iyer

opertions manager

38 Points Joined October 2011

(1) We have received a LC from a foreign buyer.

(2) According to the LC we have to submit Forwarder's Cargo Receipt (FCR) instead of Bill of Lading for negotiation of the LC.

(3) This method is used so that we can get paid as soon as we deliver the goods to a designated warehouse of the buyers forwarder.

(4) The buyer may be keeping the goods over there for a few months , and then ship it out later

(5) When we tried to negotiate the LC through State Bank of India , they are insisting for the shipping bill. As the goods have still not been exported , we do not have the shipping bill. We have tried our best to convince SBI , but they say shipping bill is a must.

Please help , how to convince SBI ??

Replies (3)

Deepak

Assistant Manager

110 Points Joined January 2011

Mr. Aswin iyer

As per rule, you can not get bill discounted (to get money) by bank untill you handover complete export document (around 8-9) to Bank.

Shipping bill is basic document to prove that export has been done. It can't be issued untill it is "shipped out". Shipping bill as name sugest issued by goods carrier i.e. shipping company once export material is finally loaded & shipped out of indian coast. Shipping co. have various office in India where you can collect shipping bill.

I think this was your only query in question which i have reply.

If you are first time exporter and no previous experience in export financing, then i think you will face zig-zag in realising the money.

Time permit me to reply in short way.

Thanks

ashwin iyer

opertions manager

38 Points Joined October 2011

Originally posted by : Deepak

dear mr.deepak,

thanks for your reply.

we do not want the bank to discount our document. We just want them to forward the documents to the buyers bank and they will pay....

is this possible.

rgds/ashwin

Mr. Aswin iyer

As per rule, you can not get bill discounted (to get money) by bank untill you handover complete export document (around 8-9) to Bank.

Shipping bill is basic document to prove that export has been done. It can't be issued untill it is "shipped out". Shipping bill as name sugest issued by goods carrier i.e. shipping company once export material is finally loaded & shipped out of indian coast. Shipping co. have various office in India where you can collect shipping bill.

I think this was your only query in question which i have reply.

If you are first time exporter and no previous experience in export financing, then i think you will face zig-zag in realising the money.

Time permit me to reply in short way.

Thanks

sunny

ASST MGR

333 Points Joined April 2011

DEAR ashwin iyer

YOU CAN SEND THE DOCUMENT ON COLLECTION BASIS TO THE BUYER BANK

ONCE YOUR DOCUMENTS ACCEPTED BY BUYER'S BANK YOU WILL GET THE PAYMENT.

FOR EXPORT WRITE OFF YOU HAVE TO SUBMIT FOREIGN EXCHANGE COPY OF SHIPPING BILL TO THE BANK. AND AFTER THE SUBMISSION OF THE SAID S/B YOU HAVE GET THE BRC FROM THE BANK

HOPE YOUR ENQUIRY IS SOLVED.