Letter of Credit References:
We have completed our export letter of credit consultancy services with success in regards to a letter of credit which is issued by International Bank of Qatar on 07.January.2018.
The letter of credit number was ILCQAI011818937. Letter of credit issued in English language.
Total letter of credit amount was USD 617.750,00. The beneficiary shipped goods in 4 partial shipments.
The beneficiary applied us very late. At the time of our intervention, 1st shipment had been waiting at the port of discharge and demurrage and port charges had been piling up.
Consequently the beneficiary was very angry and lost its confidence to the advising bank.
After we were included in the transaction, we quickly analyzed the situation and took necessary steps so that the goods were cleared from the customs for the 1st shipment.
Afterwards we prepared documents for 2nd, 3rd and 4th shipments.
Documents belonging to the remaining shipments have been accepted by the issuing bank on first presentation.
Documents Required:
- Draft in one original
- Bill of lading in full set
- Vessel certificate in one original
- Commercial invoice in 3 originals
- Certificate of origin in one original
- Packing list in 3 Originals
- Insurance policy
Specific Conditions:
- The letter of credit was available with mixed payments. %50 of letter of credit had been paid in advance. %40 of letter of credit amount is payable against shipping documents and %10 of letter of credit amount is payable after installation of the machinery in Qatar.
- Commercial invoice and certificate of origin had to be legalized by Qatar’s embassy in the exporting country.
Our Work:
- The exporter contacted us too late around 30 days after the 1st shipment.
- At the time of our intervention, 1st shipment had been waiting at the port of discharge and demurrage and port charges had been piling up.
- Consequently the beneficiary was very angry, had no idea what to do and lost its confidence to the advising bank.
- We could not checked the letter of credit in order to clear unacceptable conditions.
- Instead we quickly analyzed the situation and took necessary steps so that the goods were cleared from the customs for the 1st shipment.
- Payment of 1st shipment received by the exporter.
- Afterwards we prepared documents for 2nd, 3rd and 4th shipments.
- Documents belonging to the remaining shipments have been accepted by the issuing bank on first presentation.
Conclusion:
- Although the exporter contacted us very late, we managed to put things in order and completed the transaction without any problem for each side.
