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Should I Also Say 3 Shipment In Advance Dlc Issued.

The law of the sea.

Should I Also Say 3 Shipment In Advance Dlc Issued.

Postby Marwin » Wed Nov 23, 2016 1:50 pm

Good day Davide Papa

Assume i make an offer to my End Buyer and i want him to pay me with the Bank Issued Pre advised confirmed irrevocable transferable letter of credit, issued as non cumulative revolving, payable 100% at sight upon presentation of delivery documents. Pre advised status converted to full credit status, upon surrendering of PPI(Evidence of product certificate. 3 shipments in advance DLC issuance value. Offered at price of goods includes, buyer agrees with the seller in accordance with article 38 UCP 600 Rules, to include transfer fees, bank charges and Pre advised charges applied for the account of the buyer.

My question is

1.   My offer is 12 months. What guarantee that the Buyer can  provide the PA DLC every other month since only 3 shipment in advance DLC  issued.

2.   Offer to my Supplier. Payment:-  Non cumulative revolving irrevocable Bank issued UCP 600 DLC. Non transferable credit as authenticated by a world 100 ranking bank. Paid into supplier contract stipulated account. What guarantee supplier that i can pay every other month or should i also say 3 shipment in advance DLC  issued.
Marwin
 
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Joined: Tue Dec 31, 2013 5:26 pm

Should I Also Say 3 Shipment In Advance Dlc Issued.

Postby Dunlop » Wed Nov 23, 2016 6:33 pm

Good day Davide Papa

Assume i make an offer to my End Buyer and i want him to pay me with the Bank Issued Pre advised confirmed irrevocable transferable letter of credit, issued as non cumulative revolving, payable 100% at sight upon presentation of delivery documents. Pre advised status converted to full credit status, upon surrendering of PPI(Evidence of product certificate. 3 shipments in advance DLC issuance value. Offered at price of goods includes, buyer agrees with the seller in accordance with article 38 UCP 600 Rules, to include transfer fees, bank charges and Pre advised charges applied for the account of the buyer.

My question is

1.   My offer is 12 months. What guarantee that the Buyer can  provide the PA DLC every other month since only 3 shipment in advance DLC  issued.

2.   Offer to my Supplier. Payment:-  Non cumulative revolving irrevocable Bank issued UCP 600 DLC. Non transferable credit as authenticated by a world 100 ranking bank. Paid into supplier contract stipulated account. What guarantee supplier that i can pay every other month or should i also say 3 shipment in advance DLC  issued.
Dunlop
 
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Joined: Wed Jan 08, 2014 1:46 pm

Should I Also Say 3 Shipment In Advance Dlc Issued.

Postby jorian » Wed Nov 23, 2016 8:51 pm

Dear Brent But such has been very clearly explained in my doctrine? I'll try and break it down to a more simpler understanding. Q: My offer is 12 months. What guarantee that the Buyer can  provide the PA DLC every other month since only 3 shipment in advance DLC  issued.

A: it's NON CUMULATIVE- meaning as one credit to taken form the top , two credit revert back to 3 credit values-until the 10th , 11th and 12th shipment in where the credit value reduces from 3  to 2 then once on final delivery.

2. Offer to my Supplier. Payment:-  Non cumulative revolving irrevocable Bank issued UCP 600 DLC. Non transferable credit as authenticated by a world 100 ranking bank. Paid into supplier contract stipulated account. What guarantee supplier that i can pay every other month or should i also say 3 shipment in advance DLC  issued.

Q:The end buyer must either issued a credit supported by a bank guarantee if they where dealing with a Supplier directly the bank guarantee here is another credit supporting all or part of the the total deal value - Failure to open an advancing credit , not shipment will be sent , the supplier call upon and keeps the ' guarantee" and a breach of contract would still prevail.

An Intermediary cannot accept a Guarantee- as the guarantee is to the intermediary and not to his supplier- No matte how its twisted around the  end BUYER HAS to support the whole contract value one way or another -

Hence the DLC is opened for the total contract value i/e: 1.2 million The revolving portion is at least two or more-just in case 2 ships are loaded near the same time.Ideally 3 is the best - 1 Value is O.K but as soon as one delivery crosses over to another problems will be encountered as you need to wait for payment to clear on one shipment before the credit reverts back to the once revolving value - hence YOU must assume such problems will occur. So the revolving value is $100,000 per Shipment per month the non cumulative portion is  for 3 month = $300,000 The DLC expiration is for 13 months .(one moth or more of final shipment date)

The DLC opening support value is 1.2 Million dollars.

You don't need a guarantee- the DLC is for the whole value , the supplier gets guaranteed that the buyer is able to afford 1.2 million and the bank guarantees each  CLEAN delivery, goods will be paid for up to 3 deliveries at any one times maximum. The bank will not pay for i.e: 5  deliveries at the one time.

This is a way that intermediaries can deal in revolving deals - they can't accept 'Guarantees" and One shipment at a time payments.

regards

Davide Papa

www.smice.net  
jorian
 
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