We , Indian exporter have received LC from Germany Bank. Germany based party secured one order from Ghana and placed that manufacturing & Supply part on us. We are not known to Ghana party. Germany party asks us to make a blank endorsement on reverse side of Bill of Lading and mention " for and on behalf of Germany party" . Will then we have payment security ? Can Getmany party play with us later on?
Dear Mr.Jayanta.
As the export is to be effected under LC so for receiving payment against export without any discrepancy you need to comply all the conditions mentioned in the LC.If Germany party say to comply any thing which is not mantioned in the LC you should not comply because if you comply the documents will go under discrepancy.Further, you may ask the Germeny Party that whatever the Germany Party say should be mentioned in the LC and LC is a contract beteen you and LC issuing bank and you get the LC confirmed from your bank.
Please take note that whenever you export against LC always keep in mind that the LC should be opened by 1st Class bank.This is required for securing the xeport money.
CAclubindia
