Scribd Logo
Upload

Welcome to Scribd!

  • Trading Process

    Uploaded by

    Lakshman Yadav
    6 views1 page
    The document outlines 15 steps for commercial work on free on board (FOB) terms. The supplier sends a purchase order to the customer, who opens a letter of credit with their bank. The bank issues the letter of credit to the supplier's advising bank. The supplier then ships goods according to the letter of credit terms, prepares export documents, and submits them to their bank, which sends them to the issuing bank for payment. Payment is made to the supplier after the customer accepts the documents.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines 15 steps for commercial work on free on board (FOB) terms. The supplier sends a purchase order to the customer, who opens a letter of credit with their bank. The bank issues the letter of credit to the supplier's advising bank. The supplier then ships goods according to the letter of credit terms, prepares export documents, and submits them to their bank, which sends them to the issuing bank for payment. Payment is made to the supplier after the customer accepts the documents.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views1 page

    Trading Process

    Uploaded by

    Lakshman Yadav
    The document outlines 15 steps for commercial work on free on board (FOB) terms. The supplier sends a purchase order to the customer, who opens a letter of credit with their bank. The bank issues the letter of credit to the supplier's advising bank. The supplier then ships goods according to the letter of credit terms, prepares export documents, and submits them to their bank, which sends them to the issuing bank for payment. Payment is made to the supplier after the customer accepts the documents.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    SUNDAY, JUNE 13, 2010

    STEPS for Commercial work (FOB)


    #1. Send PO/PI to Customer for open LC. #2. Customer accept the PO/PI and send to his Bank For Open LC. #3. Customer Bank Issue LC for Supplier. #4. Advising Bank receives the LC. #5. Advising Bank Send the LC to Supplier. #6. Supplier Accept the LC and Lien Mark to his Bank. #7. Supplier Open BTB #8. Supplier Shipped the Goods as per LC terms. #9. Supplier Prepare all Export documents. #10. Supplier Collect the BL from Forwarder. #11. Supplier Submit Export Documents to his bank. #12. Supplier Bank sends the Export documents to LC issuing Bank for Payment. #13. LC issuing Bank sends Documents to Customer for Accept. #14. Customer accept the documents and issuing Bank send payment to supplier Bank. #15. Supplier receives his Payment on his account after deduct the BTB Amount.

    You might also like