Establishment of and Amendment 函电 修改信用证.pptVIP

When a transaction is concluded on L/C terms, the buyer is usually under the obligation to establish an L/C with his bank within the time limit stipulated in the sales contract. Especially for bulk sale or the commodities produced according to buyer’s request, it is very important for the buyer to open the L/C in time; otherwise, the seller can’t arrange the production and commodities. Normally, the buyer’s L/C should reach the seller 15 days (or 30 days) prior to the date of shipment so as to give the seller sufficient time to make preparations for shipment. But in practice, foreign customers may fail to establish the L/C or delay opening the L/C when the market condition changes or the shortage of fund arises. Therefore, the seller should urge the buyer to expedite the L/C at an early date. Whatever the cause may be, it is always annoying to the seller, but no suggestion of annoyance must be allowed to appear in his letter, email or FAX. It would be wrong, except in special circumstances, to start off too strongly by blaming the buyer for non-performance of contract. The first message sent should therefore be a polite note saying that the goods ordered are ready but the relevant L/C has not yet come to hand. If the first message brings no reply, a second one will be sent. This one, though still restrained, will express disappointment and surprise. Messages urging establishment of L/C must be written with tact. Their aim is to persuade the buyer to co-operate more closely and in fact to fulfill his obligations; otherwise they will give offence to the buyer and bring about unhappy consequences. On receiving the relevant L/C, the seller (exporter) should first of all make a thorough examination to see whether the clauses set forth in the L/C are in full conformity with the terms stated in the sales contract (confirmation). This step is essential. A minor difference between the two, if not discovered or duly amended