Dear SIr,
We are very new member and new exporter and importer also.
As we are finalizing a deal with Other country for shipment from other country. Here we are fully confused about to get transferable L/C or NCNDA with shipper for our commission amount. We have some queries.
We neither know shipper very well nor Buyer. and we have to commission to other company also for this deal.
1. Is our commission is safe by signing NCND contract.
2. Shipper is issuing 2 % performance guarantee bond if we take a transferable L/c can we transfer the same to buyer.
3. normally how much time it takes for reaching docs from shipper bank to our and ours to buyer.
4. Is it nessasy to check the documents for discrepency in our bank as it take too much time.
5. how will the paper will be made ( i am not aware of it.)
6. shipper is signing contract with us and we have to sigh the contract with buyer, how to avoid any risk in term and condition.
7. Is there any standard agreement, so by signing this shipper is 100 % leagly liable to pay our comission.
8. Approximately what is cost to tranfer the Letter of credit.
Any other point i am not aware.
I will be thankfull for you if you help me in this matter
Regards
Bajaj
kanhaiya.bajaj@gmail.com
INDIA
Confusion
I am also a little confused by your query but please note that "2% performance bond" is a huge indicator that this transaction is bogus and you should be taking great care. International banks have seen an explosion of fraud in international trade, especially aimed at inexperienced traders working on back to back or transferable L/C's.
Other fraud keywords are :
"Soft probe", "Fully Funded L/C" "Proof of product", "Proof of funds" etc. Please use extreme caution and on no account provide your banking details.
Peter M
Good Comment Peter!!
However it seems that our new member is not at all firm in such transactions and is not experiendced in credits by himself.
Being an agent between buyer and seller there are two possiblities:
1) Being first beneficiary under a transferable credit, where you could hide how much you earn and
2) not beeing engaged in the credit business and just receiving and openly discussed commission, which is in many cases the best way for more unexperienced agents.
It's best to read Art. 38 of UCP 600 before detailing any further questions.
-Each long journey starts with a small step-
Best regards
Frammi