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expiry date of l/c

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Wed, 06/24/2009 - 08:37
vivek
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Joined: 01/20/2008
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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..

‹ documents made in the name of consignee any bank by negotiation ›
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Wed, 06/24/2009 - 12:26
#1
Peter M
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Joined: 09/02/2008
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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.

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