Hello
We have received a document called as Bank Contract from our customer which seems like combination of LC & DP.
We have informed by the customer that original copy of such bank contract (BC) is not necessary to receive in our bank & we can proceed the shipment.
& as we do in LC terms-that submits the documents to Importer's bank through our bank(exporter) have to do the same
but then there aren't our bank details mentioned on BC
only our name is written over there as supplier.
please advise on this BC(bank contract) term
Bank Contract negotiability: unclear bank undertaking and missing bank details increase payment and document handling risk. Bank Contract presented combines features of a Letter of Credit and documentary collection; it lacks the exporter's bank details and the customer states an original BC is not necessary. Key issue is whether the BC is an enforceable bank undertaking or merely buyer-seller instruction, which affects who bears payment risk and where shipping documents must be presented. Advisable steps are to verify any bank commitment, obtain written clarification and bank identification, ensure the exporter's bank is named or agreed procedures are documented, and secure written guarantees or confirmation before releasing goods. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
