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LC for 90% at sight and 10% usance

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Fri, 06/27/2014 - 20:57
Azeglio
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Joined: 06/27/2014
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Hi Everyone,

I am an exporter. I have a deal with a customer with following terms:

- Payment will be by Irrevocable L/C for 100% of contract amount.

- 90% of shipment value will be paid at sight against negotiating shipping documents.

- 10% of shipment value will be paid after the consignee accepts the quality of goods.

What terms and conditions can I ask the LC opening bank to put into LC to secure my balance 10% payment. Of course, with the condition that the consignee accepts quality of goods.

 

Thanks

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Sat, 06/28/2014 - 07:48
#1
pan
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Joined: 09/13/2007
Usually

Hi Friend,

your bank will help to prepare a text of l/c to send to your buyer as instruction to open the l/c:

I think that 10 % has to be paid again st a certificate issued by the buyer, but in any case within a determanated period.

if you are italian you may contact me via this forum

Ciao

 

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Sun, 07/13/2014 - 18:27
#2
Azeglio
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Joined: 06/27/2014
Hi Friend, Yes, you are

Hi Friend,

Yes, you are right. 10% will be paid against Quality Cert at destination carried out by Consignee. What I wonder is if the Buyer delay sending me this Cert.

I have just got advice from advising bank that we can submit a Ben's Cert of Quality subsititution for Quality Cert. with 30 days after delivery if we can not receive it.

Do you think this clause would work?

I am not Italian though I wish were.

 

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