4 Standards Payment Terms

 

1 Letter of Credit

Payment for the full contract shall be by an irrevocable Letter of Credit (L/C) confirmed by the negotiating Bank in UAE. Validity of the L/C is to be established at the time of signing contract. Minimum validity of L/C shall be 90 days for shipment and 120 days for negotiation.

 

2 Correspondent Banks

The following is a list of currently accepted UAE negotiating Banks or correspondents to opening banks.

 

GRINDLAYS BANK

P O BOX 357 - SHARJAH - UNITED ARAB EMIRATES

TEL 359998 FAX 357046 TLX 68011 GRNDLY EM

 

MIDDLE EAST BANK

P O BOX .... - SHARJAH - UNITED ARAB EMIRATES

TEL 5374882 FAX 5356492 TLX ........... ...... EM

 

3 Supply C&F Job site, Inland Shipment, UAE destination

The L/C value should be payable according to and against presentation of documents specified below:

Down Payment of 25% of the L/C value to be paid upon receipt of L/C and against beneficiaries sight draft and commercial invoice.

Balance of the L/C to be paid against presentation of:

Sight Draft drawn on negotiating bank

Commercial Invoice

Packing List

Truck consignment note issued by TRUCKING COMPANY evidencing receipt of material for delivery to openers’ job site.

 

Other Terms:

a. Negotiating bank must be allowed to add their confirmation

b. Partial shipment must be allowed.

c. All bank charges must be on account of openers.

 

4 Supply C&F Job site, Inland Shipment, Other Middle East destinations

The L/C value should be payable according to and against presentation of documents specified below:

Down Payment of 25% of the L/C value to be paid upon receipt of L/C and against beneficiaries’ sight draft and commercial invoice.

Balance of the L/C value to be paid against presentation of:

Sight Draft Drawn of negotiating bank

Commercial Invoice

Packing List

Truck consignment note issued by TRUCKING COMPANY evidencing receipt of material for delivery to openers’ job site.

An Arabic Certificate of Origin issued by the Ministry of Commerce (UAE)

 

Other Terms:

a. Negotiating bank must be allowed to add their confimation

b. Partial shipment must be allowed

c. All bank charges must be on account of openers

 

5 Supply Ex - Works Factory in Sharjah

The L/C value should be payable according to and against presentation of documents specified below:

Down Payment of 25% of the L/C value to be paid upon receipt of L/C and against beneficiaries sight draft and commercial invoice.

Balance of the L/C value to be paid against presentation of:

Sight Draft drawn on negotiating bank

Commercial Invoice

Packing List

Material dispatch note issued by beneficiary and countersigned by truck driver confirming receipt of materials

OR

Beneficiary’s official claim after 7 days from their notification to the openers, through the bank, that material will be ready for shipment not later than L/C shipping date.

 

Other Terms:

a. Negotiating bank must be allowed to add their confirmation

b. Partial shipment must be allowed

c. All bank charges must be to the account of openers

 

6 Supply C&F Destination Port, Sea Shipment, All destinations

The L/C value should be payable according to and against presentation of documents specified below:

Down Payment of 25% of the L/C value to be paid upon receipt of L/C and against beneficiaries’ sight draft and commercial invoice.

Balance of the L/C value to be paid against presentation of:

Sight Draft drawn on negotiating bank

Commercial Invoice

Packing List

Bill of Lading

Certificate of origin issued by the Ministry of Commerce (UAE)

 

Other Terms:

a. Negotiating bank must be allowed to add their confirmation

b. Partial shipment must be allowed

c. All bank charges must be to the account of openers

 

7 Supply FOB Sharjah Port, Sea Shipment, All destinations

The L/C value should be payable according to and against presentation of documents specified below:

Down Payment of 25% of the L/C value to be paid upon receipt of L/C and against beneficiaries sight draft and commercial invoice:

Balance of the L/C value to be paid against presentation of:

Sight Draft drawn on negotiating bank

Commercial Invoice

Bill of Lading

OR

Beneficiary’s official claim after 7 days from their notification to the openers, through the bank, that material will be ready for shipment not later than L/C shipping date.

Certificate of Origin in [ ] English [ ] Arabic issued by the UAE Ministry of Commerce.

 

Other Terms:

a. Negotiating bank must be allowed to add their confirmation

b. Partial shipment must be allowed

c. All bank charges must be to the account of openers

 

8 Supply & Erection Contracts (applies to UAE Only)

Minimum validity of L/C shall be 180 days.

The L/C value should be the total of the supply and erection prices.

Payment for Supply

The Supply C&F Job site value should be payable as follows:

Down Payment of 25% of the Supply C&F Job site value to be paid upon receipt of L/C and against beneficiaries’ sight draft and commercial invoice.

Balance of supply price C&F Job site to be paid against presentation of:

Sight Draft drawn on negotiating bank

Commercial Invoice

Packing List

Truck consignment note issued by TRUCKING COMPANY evidencing receipt of material for delivery to openers’ job site.

 

Other Terms:

a. Negotiating bank must be allowed to add their confirmation

b Partial shipment must be allowed

c. All bank charges must be to the account of openers

Payment for Erection

Erection value to be paid against time drafts (dates to be determined according to the erection period) all of which are payable with respect to the shipment date.