Dear All,

The case of this LC goes like this....

1.LC is openend for qty 40,000 mt and value 1 million USD

2.LC needs 4 b/l split into 10,000 each

3.Following documents are mentioned in 46A - invoice,certificate of origin,certificate of sampling and analysis and certificate of weight 

4.Has an additional condition 47 A - 16 as " each negotiation is restricted to 0.3 million USD"

I had following comments from finance

"how do you want to negotitate total quantity shipped if the lc restricts the negotiation to usd 0.3 mio ?since partial shipments are not allowed, we have to present all four invoices (and all the other docs) in ONE negotiation - i.e. the NEGOTIATION will be for the total lc amount, it wants to keep field 47A: 16. they have to amend it to read:each invoice not exceed usd 0.3 mio"

First this is not partial shipment for sure. One vessel carrying from single source to single destination.Now since as per bank rules they have mentioned a cap on maximum value negotiation(i dont know why...).they want to restrict each negotiation to certain value. 

Now I have following questions

1.At the time of negotiation if we prepare 4 drafts total of which covers the entire shipment value and each draft is accompanied by individual set of documents (in total 4 sets of documents to be prepared), whether it is permitted even if there is not partial shipment allowed( is finance correct)

2.Can we negotiate for part quantity more than single time (i,e how many times negotiation is permitted) under one LC

3.negotation is for drafts drawn on a bank. If i am right then do we always have to give one draft covering the entire LC value. or we can give more than one draft totalling the entire LC value.

 Appreciate your comments