Subject: silly L/C clauses
dinahsun (Dinah)
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silly L/C clauses

one US buyer is going to open an L/C to us, but i found there were some silly L/C clauses, pls see the following clauses included in their L/C terms:
6w.G/s8H(f-gFOB Business Forum1M4J.G;F)U/G

.?&W,v)g7Q.IFOB Business Forum>All banking charges including LC opening fee, amendments and discrepancies in the negotiating documents to be charges to the beneficiary??s account. --->this is not reasonable, LC opening fee should be charged to the applicant, and the other charges  should be charged as per  the reason which caused the changes.  $_4n2I0Z8G;v6p1F
forum.fobshanghai.com1E9i6s:q)K6O(V/A!i
>We would allow only one amendment per LC, for each additional amendment, there will be a handling chares of USD150.00 In addition to the banks charges and the penalty will be deducted from the proceeds. --->even we ensure we can finish the shipping without any amendment of L/C, it is not acceptable for beneficiary to accept this clause.
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*e+A-F)m'y'[!f G>3 pcs in each color in required size as per PO should be sent to IN7 Clothing, Inc. office within one week of opening of LC on the vendors cost. A letter of confirmation duly signed by Ms. Vazirani of George and Martha confirming the same should accompany the Negotiable documents. --->it is not acceptable, nobody can assure we can get this letter even we arrange the samples exactly, this letter cannot be considered as a part of negotiable documents at all.
:Z'f!n3a#c+t*PFOB Business Forum
8l(g/B1`4W7^ W.G:_!~'@business forum,trade forum,business opportunity,Business China,Business India,Brazil business>A copy of inspection certificate duly signed by Mr. Babita Vazirani along with her passport copy should be integral part of Negotiable Documents. ---->it is not acceptable,  this signed inspection certificate and passport copy cannot be regarded as integral part of negotiable documents.
2z&b!R;?.G3XFOB Business Forumbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business)@:s2]0@+t
i came back to the buyer with the words highlighted in red, and rasied our problems and worries, then i got his reply today as below:forum.fobshanghai.com.|7q;u%g&^ T*P7{

-k!}*k)p%y[A Professional Business Forum]Dinah once again ¡§C FOB Business Forum5[8s u s9S9X%L&B
pls be reminded that we are not there to hurt hyou ¡§C but we are trying to protect ourselves.
;I2y.v"`:NFOB Business ForumAnd we buy over 8.0 million units a year.We are not new in the business.
3e%r5_3h*T&F*eIf it does not work ¡§C we don??t mind walking away from the deal ¡§C but we don't change the terms for anyone. forum.fobshanghai.com6S+J4p0a1_!W;s2y
pls trust us so we can trust you¡§C we want to also buy sweaters from you and we don??t want to hurt our relationship with anyone.
[A Professional Business Forum]$j:O-d!M+Q [2U1J

"W$b8G(W5d)Gforum.fobshanghai.comnow, i think even we can accept the 1st and 2nd clauses above,the 3rd and 4th clauses are really unacceptable[A Professional Business Forum]'u9b9L-}(j `-V!Z
these clauses never appeared in the L/Cs we finished before,also this buyer is complete new for us
#e(|4a a$~4\8bi learned that some companies failed on L/Cs with these clauses and lost lots of money in business
1H,n1q$\1n+R9QFOB Business Forumbut it seems that this buyer is quite firm on their terms,and from their company info, their company is very big and strong
&}:?*k,B8B"EFOB Business Forummoreover, we have invested lots of money in this deal, what to do?  
4^5y$a$r:P(t!N"Q;x&uFOB Business Forumdid you meet this kind of L/C clauses before? pls give me some advises....





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lily_trade
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Post at 2008-5-24 22:08  Profile  Space  P.M.  Buddy 
Seldom doing by LC.
#_!V)|,P6D8Q2u+YFOB Business Forum
&J4S3V)T V9j2d4Yforum.fobshanghai.comNow i am doing LC  with a customer from France,he is always kind to us,when i talk with them the clause is not easy to do,they will accept our reasons cuz they want buy from us.
!m8r-g;b4][A Professional Business Forum]FOB Business Forum.F)y'g7^(Y&d:a2`3e
If you cannt accept or you cann't sure to prepare all the documents well on time,talk with your customer,if they want buy from you,they will stand on your side.

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Lisa_Dai0713
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Dinah,nice to see your post again, your experience is so good.

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dinahsun (Dinah)
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Reply #2 lily_trade's post

thanks lily/k2E X6A3X"u3X
you are right, if the buyer really want to buy from us, thay will consider at our position
"W!?7Q,H.^8s3a)_FOB Business Forumunfortunately, my buyer is quite firm on their conditions and said they wouldn't changed the terms for anyone
!a.}%f+X!I;~forum.fobshanghai.comi think they are not sincere at all...





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dinahsun (Dinah)
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Reply #3 Lisa_Dai0713's post

how are you lisa?





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dinahsun (Dinah)
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unsolved troubles

below is the response from the buyer, i found their explanations are as silly as their consitions, we perceived that it is riskful to do this deal with them, since they don't want to pay any cents for the business...FOB Business Forum(N%^,q%?#^&_&v
FOB Business Forum)| |9?'\-v3z'k)A
Dinah,FOB Business Forum!m3`*m5x"[+x%[
forum.fobshanghai.com/o2y&|'e `8R&\
I have reviewed your queries and here are my replies to it, there is nothing major and I am sure if you go thru our replies you can easily adhere to it.
;^.\(B0c/_.tFOB Business Forum
!w8|2A8V8u)|4]a. Lc opening charges ---Please note these charges are static by the bank and it cost only 1% of to the total lc value or $150 maximum 100+50 for transmission cost.FOB Business Forum+z$c3^:m,Q
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b. Re lc amendment ¡§CThe 1st amendment is free ¡§Cnot chargeable, if more then the factory has to pay for the amendment which is very fair, amendments are normally done due to some delays etc which if because of the vendor he needs to take responsibility of the same.  forum.fobshanghai.com;@3u+u:c)k){,[+d*]

9v:f0X)b5V1A,Ebusiness forum,trade forum,business opportunity,Business China,Business India,Brazil businessc. Re the sample letter- we can assure you as soon as we receive samples within 24 hours the letter will be with you, it is all programmed at times even less then 24 hours. forum.fobshanghai.com8W/N(n3@8x/x.]
/A%w1l8^*n6C9Y
D, Inspection certificate --- here too once we receive the complete set of copy documents you will receive the inspection certificate within orless then 24 hours
)s4I/s-d0~"x+U-}FOB Business Forum[A Professional Business Forum]0h*D3q7J*q3E%w
Please note we are doing these clauses with all our merchandise getting imported to USA from various countries and we have given the vendors the letters as per our assurances. there has been no delay but you need to ensure that all documents we received are correct and in par to our requirements. These are checkpoints for us, which we cannot give up.  
8d.|6O#r5|'Abusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business
$I"l7L'F8C'p9O,B*Kforum.fobshanghai.comIn addition I also saw your query on partial shipments :[A Professional Business Forum]!B)O"e4Q3`7\1v)E(o

3q,m:G8t8b$?:P!c[A Professional Business Forum]Please understand we will accept partial shipment only requirement is you need to inform us in regard to the same and obtain our approval for it by mail. As we prefer to get our the goods by in color and size ratios so the partial qnty can be useful. business forum,trade forum,business opportunity,Business China,Business India,Brazil business8~(L)m%b:?2j,@*V2e r
business forum,trade forum,business opportunity,Business China,Business India,Brazil business%A/t*E6B3c,}
Certificate of weights and measure ¡§CYes YOUR company can issue it ¡§Cbasically it has the gross weight and net weight no of cartons/dimensions etc. If you need, I can send you a format of the same. business forum,trade forum,business opportunity,Business China,Business India,Brazil business!f2T0Y6f6];^.U"M'E
FOB Business Forum"m2G$O"J9[,g(M%F4S,p
FOB Business Forum8a8T5?(^%N'U#o"?
Please reply if it satisfies you. [A Professional Business Forum]"h4t-j*k(R6n,w3|

'|:T-Y8q1s$h"g!`7Nforum.fobshanghai.com
-C Y*t'n6u8}5Wbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business-T%^)G2R3S7C8i%u&{/n1d
Regards





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jackylau
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I have no experience about L/C , but I think above four clauses are unfair terms .





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chenjane
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I had processed L/C before , but this Pakistan customer is very kind , their clauses on L/C  were easy to do, even we had gotten all money but the customer was still not getting their goods





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lcs822
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Post at 2008-5-29 13:51  Profile  Space  P.M.  Buddy 
New customer,crazy L/C! I suggest you should be careful.Don't give any chance to the cheat.As a exporter,it's very important to recover the money,rather than the orders only.I think you have two choice:1:Try your best to persuade the customer to amend the L/C clause;if they didn't accept and give you unacceptable pretext.The best way is give up the order.FOB Business Forum/{'X&u2O4B.E
2:You should buy ECI(Export Credit Insurance) to avoid risk.

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lcs822
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Post at 2008-5-29 13:53  Profile  Space  P.M.  Buddy 
Difficult to get ready all the documents.What does your customer want do?

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sunnysunshine12
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I'm a newbie here, so I don't knew how to deal with it. But I gree with lily. If your buyer really want to do business with you. He will consider at your position. I want to ask a stupid question why we can't accept the said clause. Thank you.

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minzhilong
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Post at 2008-5-29 16:20  Profile  Space  P.M.  Buddy 
dinah,it's unfair and riskful to do this business with a new customer.FOB Business Forum#W#r)g4o-K/g
1. if you can't get the letter of confimation and the inspection certificate on time that mean you can't ensure prepare all the negotiate documents
&y%v5Z(W'}:Ubusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business2.according to the international practise the buyer should pay the open fee
/_!}:r9W7O5c-N7H[A Professional Business Forum]in a word you should be careful and make sure you can get the money can you accept this L/C

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dinahsun (Dinah)
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QUOTE:
Originally posted by chenjane at 2008-5-29 09:09
4h-N%i4d1|.A3h$l%g'x8~[A Professional Business Forum]I had processed L/C before , but this Pakistan customer is very kind , their clauses on L/C  were easy to do, even we had gotten all money but the customer was still not getting their goods

'E)O0_%@-D2N'X6I1h
2t&@ T:E.c:k-Xforum.fobshanghai.comit is very lucky to handle L/C terms with such a kind buyer...





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dinahsun (Dinah)
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QUOTE:
Originally posted by lcs822 at 2008-5-29 13:51
-?6k0W f*C/t*h _FOB Business ForumNew customer,crazy L/C! I suggest you should be careful.Don't give any chance to the cheat.As a exporter,it's very important to recover the money,rather than the orders only.I think you have two choice:1:Try your best to persuade the customer to amend the L/C clause;if they didn't accept and give you unacceptable pretext.The best way is give up the order.forum.fobshanghai.com0@:c,?"i-K0j
2:You should buy ECI(Export Credit Insurance) to avoid risk.

forum.fobshanghai.com7Z6M*Q u.C0h#b

)L$y6i4Q&O:[1Y*vyep, you are right...
,K0t*T)K1IFOB Business Forumhave you tried ECI before? i knew little about it, i think this service is proper for big enterprises...FOB Business Forum.L(}4^;g,I(N
i am negotiating with the buyer now, hopefully, the buyer will ammend those clauses soon....





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dinahsun (Dinah)
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QUOTE:
Originally posted by lcs822 at 2008-5-29 13:53
0`4t:A7p,A#l8@forum.fobshanghai.comDifficult to get ready all the documents.What does your customer want do?

FOB Business Forum/o7Q/d1}:N)f%u8c
[A Professional Business Forum](f8^#J2m$}-Y
yep
*H&j1L)I4fFOB Business Forumshe said she just want to use those connditions to protect themselves....+v!n:j3\3g4z8O6}1`
i have lost a few days on this problem forum.fobshanghai.com,p1l(o7E,Q
anyway, we won't accept the L/C if they don't remove or revise those clauses...





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