Letter of Credit Forum

Dear All,

I have a question on the Foreign Currency realization date against export proceed, considering the following points –

1.       Export under LC –

2.       Payment terms – 60 days from B/L date

3.       LC advising bank – XYZ, India, LC confirming bank – XYZ, Zurich

4.       Exporter present documents for negotiation with XYZ bank, India and XYZ bank, India has remit the payment after received documents confirmation from XYZ, Zurich. It will take 7-10 days from the date of documents presentation.

Then what will be the actual foreign currency realization date? 1. Date of received the payment against documents negotiation or the actual payment received by the bank on maturity i.e. 60 days from B/L date.

Please advice with explanation……..