Ask your question here..: Hello. Im halfway on starting a trading company. but i seem to have some problems when trying to clarify the export procedures. Among my inquiries are:
1) how long does it take to clear a LC?. or the whole process from creating an LC to payment?
2) lets say i have to export some goods to London, CIF terms. What are the documents that are needed for me to submit to the bank in order for the buyers LC to release payment?
3) what are the detail procedures that a container will undergo starting from loading the goods at the factory, to loading the container onto the ship?. i know its the forwarding agent’s job. but i need to know in detail where the cargo is every minute once it leaves the factory.
4) is there an electronic way to create an agreement or for the buyer to submit a purchase order?. it seems that sending documents backwards and forwards is time consuming, especially if it is just a one-off delivery.
5) last but not least, can an irrevocable LC actually be revoked? even when issued by one of the top 20 banks in the world.
This questions are asked by my bank that will be financing my business. I have showed him my proposal and the whole concept. but there are some things that i have overseen. I have helped several manufacturers before, but only as an agent. so once a buyer has been confirmed, i will just forward it to the manufacturer with a small commission. so the whole process in detail is unknown to me. Please help. Thanks guys.