antibiotic clause in LC

[RAJESH AUDITHYAN]

Dear sirs

can you pl clarify antibiotic clause in Letter of Credit ? Export product Semi husked coconut to Jebel Ali port. It is mentioned in LC given by buyer to shipper in India.

with rgds

Rajesh A

[Yash Jain]

Dear Sir,

Of late, Indian food exports are subject to strick check by customs of the importing country, they check for whether the food as being imported from india contains any chemical (Banned / Probhited) in the importing country.

Indian farmers now a days use complex fertilizers which somehow transmits this chemicals to the exported item. The term antibiotics generally refer to those banned chemicals.

Recent instances are rejection of Shrimps (Exported from india, but rejected in USA). Similary dubai has rejected Indian chickens as they contain high level of these chemicals.

Now your buyer must have placed this condition in clause 45A, by which your buyer is informing that in case the consignment is rejected at customs itelself, he will not be responsible for the consignment (For which he is right).

Hence on a cautionary note, I request you to please get the list of banned chemicals/restricted level in foods items from the buyers of the importing country and perform Joint analysis. (Though it will cost you a bit but it will ensure you the safety of consignment).

Also please get the information from buyers as to whether any of the lab in his (Buyers cournty) carries out the test which is acceptable to customs of that country , if yes, then without thinking even for a second, send the sample consignment to that lab and get report.

Comments from other members highly solicited.

[RAJESH AUDITHYAN]

Dear Yash Jain Ji

Many thanks for your detailed reply

With rgds

Rajesh A

AI Summary

Antibiotic clause in Letter of Credit shifts customs rejection risk to buyer; exporters must obtain banned chemical lists and use acceptable testing. Antibiotic clause in a Letter of Credit allocates the risk of customs rejection for prohibited or restricted chemical residues to the buyer, prompting exporters to obtain the importing-country banned-chemical list, perform joint analysis, and use laboratories and test reports acceptable to the importing country's customs to reduce rejection risk.