Consulta 232 – Confusión respecto a la modalidad de pago (vista o diferido)

Pago a la vista para beneficiario o a 120 días para ordenante Dear Sirs, The reason of this message is to consult a queries for the Expert Group of the ICC in banking rules, regarding a LC documentary received. On verifying the special conditions of letter of credit, we notice that payment conditions for the …

Pago a la vista para beneficiario o a 120 días para ordenante

Dear Sirs,

The reason of this message is to consult a queries for the Expert Group of the ICC in banking rules, regarding a LC documentary received.

On verifying the special conditions of letter of credit, we notice that payment conditions for the shipment is at 120 days after sight, but on checking payment conditions recorded in our files, the usual payment conditions of our Customer is payment at sight.

As per consulting with them, they inform us that the payment condition for us is same.

It seems that in LC it is written as 120 days usance.  This means that the importer company can wait 120 days to pay to his Bank. However, our company will receive the settlement as L/C at sight conditions. They said that the issuing Bank will pay us at sight and Importer can wait for payment to their Bank at 120 days after our payment.

It is correct?