Home › Forums › Letters of Credit

expiry date of l/c

1 reply [Last post]
Wed, 06/24/2009 - 08:37
vivek
Offline
Joined: 01/20/2008
Posts:
Printer-friendly versionSend to friendPDF version

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 ›
Top
Wed, 06/24/2009 - 12:26
#1
Peter M
Offline
Joined: 09/02/2008
Posts:
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.

Top