Best Trade Solution

Hi,

We have a bit of an urgent situation & I would really appreciate some advice, especially from people who understand Nepal's banking system/laws.

We were informed by a new client that they were unable to send 30% TT Deposit for an order, as Nepal's allow do not allow Partial TT Payment and one could only pay 100% TT as a single payment.

After various rounds of discussions, we agreed that 100% TT Payment would be made upon shipment. Our understanding was that, the buyer needs BL as proof of shipment in order to do the TT, and hence the shipment was sent out and BL Copy sent to the buyer. However, upon receipt of this, the buyer mentioned that he believes there was a misunderstanding & Nepal's laws do not allow a 100% TT Payment IF the shipment has already been made and now DAP is the only option available to them. They claim that they meant, that they would send 100% payment when the goods are ready but before shipment.

This has put us in a very difficult situation as the shipment would be reaching in 4 days and we find DAP to be a very high risk transaction and normally do not accept DAP as a payment method. I would appreciate if someone who understand's Nepal's system could share some input on this. Firstly, are these rules really in place, as they sound very restrictive and if so, are there any possible workarounds to this?

Also, I wonder if there are any other alternatives that could be used to cover our risk in this situation.

Thanks

Hi,

I wonder if anyone can help with this?

Hi Pal,

I saw in another forum that someone gave an answer.
Your request is not for documentary credit advice but concerning a specific transaction with Nepal, please contact a bank there asking if the hampers you are facing are true or not.
I invite posters that have experience on transactions with Nepal to write their comments.
No experience from my part.
Ciao

When you say DAP do you mean documentary collection at sight?

i.e. your bank sends documents to the buyers bank with instructions to release documents to the buyer only against payment?

If this is what you meant - what makes it high risk? If you meant something else - what did you mean.

Finance