I published an article in the latest edition of China Law and Practice. The objective is to provide importers with the basics they need to know about letters of credit.
In my experience, it is one of the most under-utilized tools in international trade. Some sophisticated companies recognize its usefulness.
But many small and midsize importers still accept to transfer large deposits (above 10,000 USD) to unknown suppliers! Unfortunately, these deposits are never returned, in case the buyer is disappointed with production.
Here is the content of that article:
- Highlights of a letter of credit
- How a letter of credit better protect the buyer from late shipments, non-conformities & poor quality
- How letters of credit can be cancelled
- Practical advice, and common pitfalls to avoid
- Tips for negotiating letters of credit
- Why Chinese suppliers are so against letters of credit
- How buyers can increase their chances of the supplier using letters of credit
You can read that full article by clicking on this link.
