I am negotiating with a buyer regarding export of goods to be shipped to the buyers country, payment term Documentary Credit (LC), trade term FOB. Which considerations do I have make?
F-terms: Under F-terms the buyer is establishing the contract of carriage for your account. In case the buyer has not fulfilled his obligation you might be left without means of conveyance. This in turn might cause late shipment (discrepancy in the LC). You might have to effect shipment from a port of shipment not permitted in the LC (discrepancy) in order to avoid penalty due to late shipment. However, where you have confidence in your counterpart banks do not discourage from F-terms under LCs.
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