A New Delhi based importer and distributor of Engineering plastics with an annual turnover of INR 1000+ crores. The company imports plastic resin from suppliers across the globe every month in multiple shipments. Client regularly avails supplier’s credit facility under Usance LC payable at sight (UPAS LC). Normally, documents are routed from the beneficiary bank to the negotiating bank to the LC issuing bank for acceptance. The beneficiary lodged the documents with another relationship bank (which was not a bank mentioned in the LC). Since this bank wasn’t a party to the LC, they routed the documents directly to our client’s bank as per the details in transaction documents.
Myforexeye Value addition:
The client was unaware of the fact that documents were routed through another bank to their LC issuing bank. The shipment arrived at an Indian port and was ready to be released. Client approached their bank with their acceptance to get the documents released. Then they got to know that documents had arrived through a different bank instead of the negotiating bank or the beneficiary bank. Given the uncertainty regarding the release of documents and the impending demurrages in a day or two, Myforexeye team suggested to the client to arrange a clarification letter from their beneficiary stating the erroneous routing of documents.
The beneficiary stated in the letter that they erroneously submitted the documents to their other bank instead of the primary bank. Clarification letter was sent by beneficiary to issuing bank via mail & was later forwarded to negotiating bank for notification of the issue. Myforexeye team coordinated with the negotiating bank as well as the issuing bank to get the documents released in time and the funding to be made to beneficiary bank at sight.
The client was able to release his goods on time & funds were remitted by the negotiating bank at sight. The client was happy with the service provided by Myforexeye team in solving the problem with timely advice and coordination with both the LC issuing bank & negotiating Bank.
07 Sep 2019 03:03 PM
A large importer based in Delhi. The client had started a relationship with Myforexeye 6 months back. The client was getting extremely worried about persistent rupee weakness. Their import payment of USD 1 million was due for September 2019.
17 Aug 2019 05:53 PM
A South Indian Electric Vehicles manufacturer well known for selling battery operated two-wheelers. The company regularly imports various components required to assemble two-wheelers from different geographies of the world. Given the focus on green e
03 Aug 2019 02:13 PM
A Mumbai based X-Ray film importer with import turnover of INR 6 cr had to make an import payment of EUR 1,00,000 against the import of master rolls of x-ray film from Germany. The client deals with a PSU bank which has been charging card rate on all
20 Jul 2019 06:09 PM
A Surat based woven products’ manufacturer and exporter. The firm exports woven fabric, post bags, laminated bags, cement bags, and other industrial packaging products in the international market with an annual export turnover of INR 10 cr. The firm
29 Jun 2019 04:49 PM
Myforexeye has appointed ‘Referral Partners’ (RPs) across the country in order to bring users of foreign exchange closer to our technology platform. The Referral Partner in Kolkata referred close to 10 exporters and importers in last 1 month. Our tea
15 Jun 2019 05:00 PM
Case: A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner