L/C Advice Urgently Needed

Discussion in 'Growing and Managing a Business' started by DazzSt, Dec 20, 2010.

  1. DazzSt

    DazzSt
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    Hi all,

    We received from our bank an irrevocable at sight L/C from a new customer in Kuwait back in late October. L/C's are fairly new to us. Due to various delays the goods were only collected from us by their freight agent last Tuesday (20ft sea container) and is due to be loaded on the 24th December.

    I noticed, prior to collection that the L/C had a latest collection date of 30th November and I emailed the customer for advice. They agreed that subject to us paying the US$100 discrepancy that they would accept the late shipment date. We agreed to this.

    I have now read the L/C again and have discovered to my utter disgrace that the actual L/C expiry date was the 15th of December.

    I have emailed the freight agent that the goods must not ship on the 24th due to these expiry dates as we have not received any formal confirmation (apart from an email from the customer) from our bank regarding the extension to these dates.

    I have emailed the customer advising the same.

    Can someone please advise that we can have these goods returned to us by the freight agent (obviously at our cost) if we decide this and exactly what safeguards an L/C at sight actually provides the seller when these circumstances arise.

    Many thanks
    Daz
     
  2. Fergal

    Fergal
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    Hi Daz, what country or state is your business based in?
     
  3. seanstevens

    seanstevens
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    You should be able to (with everyones permission and at a fee) have the date changed on the LC so that it is valid for a while longer. Being an irrevocable LC you are not going to be able to cancel it. You will want to check the small print, if your company has not kept all the conditions (delivery) within time you may be liable to pay out some compensation to your customer. You will also need to check all the other terms as you may now be liable to still ship them the goods and take a risk of getting paid as the bank may not be liable.
     
  4. lkglak1

    lkglak1
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    nice post thanks 4 sharing
     

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