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.
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
01 Jun 2019 03:38 PM
A Surat based client engaged in manufacturing and wholesaling of a wide range of polyester yarn. The company exports products to Turkey, Jordan, Gulf Regions and has foreign currency receivables in the U.S. dollar. The client had recently subscribed
17 May 2019 04:25 PM
Myforexeye was approached by a firm at Surat that is run a young Chartered Accountant who had been following Myforexeye keenly for a while before approaching us for a partnership. We have appointed him as an Affiliate to promote services offered by M
04 May 2019 06:18 PM
A fastener and machine components’ manufacturer with exports mainly in Europe and the U.S. Client had to book EURINR export forward for EUR 2,30,000 with the bank. The client did not have a direct access to his bank’s Treasury and the forward contrac