if the drats say 120 days from the invoice date in a l/c , and last date of shipment is 30 th june what will the field available by: say- by acceptance or by negotiation? also whatwill be the expiry date of the l/c . willit be after 120 days or can it be earlier say 30 days from last date of shipment? please clarify as i am confused..
Term or Usance L/C's
If the sales term is 120 days from invoice date then the L/C will be available either by Acceptance (of a bill of exchange) or by Deferred Payment. The usance (term) period is NOT part of the L/C validity. The determining factor for validity is the number of days allowed for presentation of documents after shipment - for example if the lastest shipment date is 1st July and you allow 21 days for presentation of documents, then the expiry date will be 22nd July.
Hope that clarifies.