Regarding Letter of Credit - (L/C at sight)
Sajid
(Querist) 13 March 2011
This query is : Resolved
We have received a Transferable and Irrevokeable L/c at sight from HK buyers. We have transfered this L/c at sight to other exporter.
There is a clasue in it that, attach swift message along L/c for collection. the buyer has not send the swift message. But we have send the letter of credit for collection without swift message, along with other documents like bill of lading, origin cert, shipping bill, insurance cover etc.
Now, the Banker is asking us to get the swift message from the buyers, until then the bill will be pending at the table of L/C issuing bank.
So, pls advice what to do?
This is LC at sight. I have not understood the meaning of it. Because it is not paid by the Bank at the time of presentation, they have send it for collection. We have already send the goods to the buyer. We have proof of sending goods. We are at risk or not. We have covered ECGC.
Devajyoti Barman
(Expert) 13 March 2011
If the Bank was instructed at the time of opening of l/c for submission of swift message before disbursal of money, then you have to option but to produce the same.
M V Gupta
(Expert) 15 March 2011
Send e. mail to the foreign importer/ correspondent bank to arrange to send to you the sift message immediately and also consider holding up delivery of the goods to the importer till receipt of the sift message at your end. You may also send a fax message to the above effect to both parties and preserve copies of the e.mail and the fax message on your record for future reference.
