Can we ship goods on an internation transaction BEFORE the Lc has beed applied f
Can we ship goods on an internation transaction BEFORE the Lc has beed applied for?
We have a very trusted customer with whom we do constant business, but because of some logistical issues we are faced with the question of if we can ship a couple of days before the LC is acyually opened. That is, if the BL date is prior to the LC opening date, would the LC still be valid?Dear Sealcoat:
If you ship before the LC is received you run a big risk of not beign paid.
The LC requires the Bill of Lading usually but I do not know what type of LC you have.
Can you advise the type of LC?
Can you advise what country you are shipping too.?
Can you advise if you have long term good relations with this customer.?
This all determines your risk factor.
Customers in a foreign country sometimes play the rush game and push you to take risks by shipping before you receive the LC. I have been asked many times to do this but I just hold my ground and advise no shipment until LC is received, reveiwed and approved by management. You cannot rush it and make mistakes. Watch out for the ship dates and the expiry dates on the LC. If you do not meet these dates then it could cause you a payment problem.
Thanks
I hope this is of help.
Regards,
Thomas H. Ward, MBA
Kemco LLC
email: thward@kemcointernational.com
