Hi all,
I've a question regarding export in Algeria.
Do you know if Algerian Banks may accept to put FCR instead of Bill of lading in documents to present for negotiation?
It's the first time that I've a request like this and I'm very confused...
Thanks to all!
Bye
Barbara
Algerian Exchange Control
Hello All
I am not wanting to make the wrong assumption here, but I think Barbara is asking if payment is allowed in terms of Algerian Excon against an FCR - bear in mind that many States (not just those in Africa) would require, by law, a bill of lading or 'shipped on board' document, rather than a received document.
Here is a link to a site dealing with Algerian Excon. I cannot see anything specific myself, but I have only glanced over it.
http://www.exchangecontrol.net/exchange-control/items_on.aspx?country=Algeria&num=3
The commercial term is not relevant at this stage and I believe Barbara is correct - look to the law first. Then, look to the contract
So, do any posters have direct experience of Algeria they may be able to share?
Cheers
phill doran
"...in armour bright, the merchant men..."
...the morning after....
Hello
Here's another link. Although it deals with other restictions which regulate Algerian Import credits, from what I have read elesewhere I doubt if a 'received' document would be allowed in terms of the Algerian Excon.
http://mkaccdb.eu.int/madb_barriers/barriers_details.htm?barrier_id=095308&version=2
So, no FCR and I think you are saddled with a bill (there's a stork joke in there, somewhere) *
Other thoughts welcome, of course...
cheers
phill doran
"...in armour bright, the merchant men..."
*Ephippiorhynchus senegalensis...the saddle-billed stork
Follow the letter of credit
Hi Barbara,
I would suggest that you follow the terms of the letter of credit. If the bank states that they are looking for a FCR, then it would be acceptable. If they do not, then it would not be acceptable.
Best regards,
LC Sam
Yes, it's clear that we have
Yes, it's clear that we have to follow the l/c request.
Maybe I was not clear in my explanation, I'm talking about the possibility that we (we are exporting to Algeria) put FCR instead of b/l in documents to send for negotiation... now, the l/c is not open, we are studing a list of documents" to suggest to our customer, as for example invoice, packing list, certificate of quality, certificate of origin...and we whish to know if someone has exported in Algeria (that has a lot of rules and burocracy in this kind of operations) presenting, together with the other documents the FCR instead of b/l.
Thanks for Your kind replies
Barbara
FCR for an Exporter
Your terms of sale (incoterms) will be the first determining factor as to the document requirements. If you are considering an FCR, it is because your incoterm would end your risk before goods are loaded onto the vessel. As an Exporter if your terms of sale are not inclusive of the ocean freight, then there is no reason to accept the liabilities of waiting for your payment for issuance of bill of lading (and the myriad of issues that come with that). You would want to receive payment upon your release of goods to the buyers forwarder, and at that time exchange for the FCR.
I understand your concern regarding country requirements playing a role in the documents submitted, but incoterms will be the first factor of consideration. Best Regards, letterofcreditcollection.com
FCR and control over the goods
Dear Sir, FCR is not a transport document and it will not be giving full control over the goods to the exporter.
In case of a discrepant presentation, which is not uncommon in LC world, importer may be able to get the possession of the goods without accepting the discrepancies.
On FIATA FCR templates it is written that "Forwarding instructions can only be cancelled or altered if the original Certificate is surrendered to us, and then only provided we are still in a position to comply with such cancellation or alteration.", which means exporter has to give at least one original FCR document to to forwarding company before cancelling the previous instructions. Also it is not enough as the forwarding company should be in position to comply with this request.
In conclusion, in case of a discrepant presentation, exporter may be find himself only hoping to get paid otherwise bring the dispute to the courts.
Other comments are wellcome.
International letter of credit consultancy services.
be awere of the extra risk
FCR is not a transport document. If you are an exporter/importer please kindly understand your risks by using FCR instead of a B/L. I suggest using B/L as it is a secure transaport document for all of the parties involved.
International letter of credit consultancy services.