Documents required for payment using L/C for trade under FOB

I pay for my imports using L/C. Normally I import on CFR or CIF terms and in my L/C I will state that BL is one of the documents to be presented by my seller. This is obvious because BL is the document evidencing actual loading and shipment of cargo.

Now I have a new seller who will sell only on FOB term. In this case, what document should I ask from my seller as evidence that he really has the cargo ready for shipment? Since he is not arranging shipment (I will be arranging it undder FOB term), he will not be able to produce BL.

Of course I will call for the other usual documents such as invoice, packing list, etc. But these documents can be generated easily and has no real value in terms of evidencing that the seller has the cargo.

Thanks in advance.

Replying to [kai1]: F.O.B is for the risk of the buyer. As CIF and other terms, it is also needs of B/L. It is likewise to the CIF terms also. Only the terms of shipment being chance not all the documents. you must communicate your seller/supplier for your more information.

Replying to [Arnel]:
Hi, thanks for info.

To make my enquiry more specific:
- When I buy CIF and pay on L/C, I will ask for BL in my LC.
- When I buy FOB and pay on L/C, can I still ask for BL in my LC? Since I will be arranging for the shipment, my buyer obviously cannot have any BL. So my question is: Then what documents should i ask from him in my LC (other than those standard invoice, packing list, etc.) that is evidence that he really has the cargo and the cargo are really ready to be loaded?

Regards.

Replying to [kai1]:This is the case; We as a manufacturer, even a CIF or F.O.B terms is in use, we are the one preparing for the shipment providing that... You know why? Let me give you some idea. As we ship in F.O.B. Terms, all the documents, Forwarder Cargo, is ours, only we get a payment of the buyer to pay the certain documents for the shipment, we add up the cost of the documents and tell it to our buyer, that they need to pay the documents payment. That is our arranging here in our company.. That is why even an F.O.B. are like just the same with our service to our buyer.. Thanks

Replying to [kai1]:FOB Shipment means your supplier will deliver the goods to you at his/her port.

If your terms with your supplier are FOB then you can always ask the supplier to provide you the B/L having stamp from the shipping company mentioning RECEIVED FOR SHIPMENT.

Other that the above you will require Original Commercial Invoice, Packing List, Certificate of Origin, Fumigation Certificate (if required by your local customs and port authority), Consular Invoice (if required by your local customs and port authority)

Replying to [kai1]: And for CIF and FOB you ask for B/L.

Quoting from [Arnel]:


Replying to [kai1]:This is the case; We as a manufacturer, even a CIF or F.O.B terms is in use, we are the one preparing for the shipment providing that... You know why? Let me give you some idea. As we ship in F.O.B. Terms, all the documents, Forwarder Cargo, is ours, only we get a payment of the buyer to pay the certain documents for the shipment, we add up the cost of the documents and tell it to our buyer, that they need to pay the documents payment. That is our arranging here in our company.. That is why even an F.O.B. are like just the same with our service to our buyer.. Thanks

Hi Arnel,


Do you mean that no matter the what we are using, CIF or FOB, the procedures of shipping the goods are still the same. The difference is just that the buyer need to pay for the freight cost if the term is FOB?


Cheers!!

Replying to [kai1]:you have to advise your shipping agent to issue the BL..after recveiving the goods from the supplier your shipping agent should give him the BL and he has to sumit the BL to bank for payment. the BL to be issued as To-Pay basis.

Replying to [amienleo]:

Hi, this is the same question that I hope someone can answer: If i sell "CFR" then i will arrange shipping matter (for example, vessel booking) so i will have a copy of the B/L from my shipping agent.

My understanding of selling "FOB" is that i will let my buyer handle shipping matter while i just arrange for my cargo to be trucked to the port for my buyer's shipping agent to take over, then how does the B/L come into my hand? If no B/L comes to my hand then how do i evidence the shipment of the cargo as agreed upon in my sales contract with my buyer?

Thanks to all who have kindly offered advice.

Regards.

Dear sir,


i would intend to import waste paper from seller which will come

under iirovocable L/C ,so that what documents will be required from

seller and purchaser , kindly guide us.

thanking you,
k.murugesan

Replying to [kai1]:please forgive me but what is L/C and FOB