CASE STUDY #4

Doha file

What are the documents in this file ?

3 emails from Adbul Hamed Hamate, quotation from INTERMED’s supplier, email from supplier, Invoice to buyer, irrevocable L/C, bill of lading, certificate of origin

What does these documents tell us ?

Goods already exported, AHH wants to postpone shipping, L/C irrevocable, lot of documents needed by L/C missing, regular client

What kind of risks are there in this file ?

• Double risk of non-payement (already shipped + L/C expire if we agree to postpone delivery)

• L/C not correct type for seller

• ittle time to get documents with administrative stamps needed (19 days)

• conditions not respected in Invoice (not in KG, post code issue, some things in French, NOT SAME prices btw invoice and B/L)

What should we do ?

• Try and find another buyer near Doha (lot of commercial effort)

• Worst case scenario: Holding cost (warehouse stocking) + buyer might not want them anymore

• Can give them a discount

• Ask the buyer to pay for stocking price (unlikely they accept) & you can’t force the customer to receive goods in June

• If storing, need to renegotiate the L/C (focus on type, time (expiry) and documents needed)

• Or redo whole L/C