I need comprehensive information on letter of credit workable for my
business need in USA.

Aim.
I want to work as middleman, get an order from buyer, and place it
with producing supplier. Gain commission from the business. Both
supplier and buyer should not know my selling or buying price, at same
time I want to have legal payment structure like irrevocable,
transferable Letter of Credit.

Business Scenario for L/C

Buyer opens L/C (transferable etc.) to me in USA for amount USD 100.0,
I want my bank in USA to transfer the L/C to producing supplier with
amount USD 80.0.

When supplier send the documents to my bank in USA, my bank replace
producing supplier?s invoice (which is stating USD 80) and packing
list with my invoice (which will state USD 100) and my packing list
and then submit the documents for payment to buyer?s bank. After
receiving payment from my buyer?s bank, my bank remits the money as
per his L/C to producing
supplier and keep the difference in my account which is my commission.

My question

1.	Can banks in USA handle such L/C terms?
2.	Which banks? Plz give details,email addresses etc.
3.	If above is not possible, I want solution in accordance with my
business scenario, that is I don?t want my producing supplier and
buyer to know my buying and selling price. (Opening L/C with my money
is not possible for me, I want to use the buyer?s L/C for that
purpose.) NOTE : ONLY INVOICE AND PACKINGLIST WILL BE REPLACED NOT
EXPORT DOCUMENTS (they will remain unchanged).

thank you !

Thanks for asking. 

In the U.S., order fulfillment and transshipping services that you
describe are not handled by banks, but by companies that specialize in
these type of transactions.


ORDER FULFILLMENT/DISTRIBUTION
----------------------------------------------------------------------

This method employs a third party fulfillment center to receive
shipments, warehouse them if needed, receive payment, then send the
goods on to the purchaser with a customized invoice. You may pick and
choose among the services available from each company to customize the
process for your sales and products. Each fulfillment company will
have their own internal credit procedures, which can generally
accommodate letters of credit or deposit with U.S. banks. Companies
may also have product weight, size and/or value requirements that must
be met.

The individual fulfillment companies can also advise you about banking
arrangements that they accept and those that are customary among their
international clients.

I have selected several companies which match all your requirements,
and appear to be best suited to your needs.


One World Fulfillment
Headquarters, Mobridge, South Dakota  
Sales: Los Angeles, California  
Telephone: 1-605-845-7172 Outside the U.S.
Contact Form: http://www.owd.com/getpricing.html

Read about One World's Fulfillment Services:
http://www.owd.com/whatwedo.html

One World also offers a handy dictionary of fulfillment terms.

Dictionary of Fulfillment Terms
http://www.owd.com/quickdictionary.html


Coast to Coast Fulfillment
773 Victory Highway
West Greenwich, RI 02817-2111
Tel: (401) 397-5075
Fax: (401) 397-5031

Coast to Coast Fulfillment, Inc.
http://www.ctcf-inc.com/htmlCTC/client_products.html


NetShip
450 Distribution Centers Nationwide
Email: inquiries@netship.com 
Contact Form: http://www.netship.com/Published%20Website/import/idregistration_form.htm

NetShip offers both Domestic and Import distribution. An Import
Distribution Demo explains the Import and Distribution processes.

Import Distribution Demo
http://www.netship.com/Published%20Website/import/id_demo/iddemo.htm

NetShip FAQ
http://www.netship.com/Published%20Website/import/idfaq.htm


Keystone Internet Services - Fulfillment
1500 Harbor Blvd.
Weehawken, NJ 07087 
Fax: 717-633-3199
Email: info@keystoneinternet.com
Contact Form: http://www.keystonefulfillment.com/getduck.asp

Keystone's Fulfillment Services
http://www.keystonefulfillment.com/fulfill.htm


The Bentley Company - World Packaging
4080 N. Port Washington Rd.
Milwaukee, WI 53212
Tel: 414.967.8000
Fax: 414.967.8001

Bentley offers 60 years of experience in export, import, distribution
and warehousing.

Bentley Services
http://www.bentleywp.com/distribution.html


Further Fulfillment Resources
----------------------------------------------------------------------

Yahoo Directory - Fulfillment Services
http://dir.yahoo.com/Business_and_Economy/Business_to_Business/Corporate_Services/Customer_Service/Fulfillment_Services/

Google Directory - Order Fulfillment
http://directory.google.com/Top/Business/Transportation_and_Logistics/Distribution_and_Logistics/Distribution/Order_Fulfillment/

Business.com - Warehousing and Distribution/Fulfillment
http://www.business.com/directory/transportation_and_logistics/logistics/warehousing_and_distribution/fulfillment/


A U.S. Bank Account
----------------------------------------------------------------------

If your business requires a US bank account, you will need an IRS Tax
Identification Number.

The IRS explains how to obtain an ITIN from Abroad:

"The IRS has permanent staff which are able to help process Forms W-7,
IRS Application Number (Fill-in PDF) at the following U.S. embassies
overseas: Berlin, London, Mexico City, Paris, Rome, Singapore, and
Tokyo. In addition, there are public accounting firms overseas in
certain countries which are acceptance agents for ITIN numbers. You
will find their names and addresses at the Acceptance Agent Program
page.

If none of the above persons can help, then the IRS will accept a Form
W-7 accompanied by ORIGINAL documents which establish to the IRS

  1. The identity of the foreign person, and 
  2. The foreign status of the ITIN applicant"

To see all the requirements and procedures, see:

International Taxpayer - Obtaining an ITIN from Abroad
http://www.irs.gov/businesses/small/international/article/0,,id=96690,00.html 

The following companies state that they can provide the means to
obtain U.S. Banking services for foreign nationals. I am not familiar
with any of the services listed, so cannot offer information on their
reliability.

USBankAccount.com
http://www.usbankaccount.com/

VALIS International
http://www.us-bank-account.com-default.net/faq.htm

The following SitePoint Forum thread might also be applicable:

Opening A U.S. Bank Account
http://www.sitepoint.com/forums/showthread.php?t=166822

 

Search Strategy
----------------------------------------------------------------------

Google search terms:

"order fulfillment" warehouse distribution
"us bank account" foreign nationals
"open a us bank account"



I hope you find that one or more of these services offers the perfect
partnership for your US distribution channel. Should you have
questions about these links or materials, please, feel free to ask.

---larre

---

Request for Answer Clarification by ramzi04-ga on 03 Jun 2004 21:23 PDT

Hi..

I am confussed, why do i want to involve another company and increase cost ?

I simply need to know about the bank which can receive an l/c from
buyer, transfer same l/c to producing supplier.. I dont see any need
of wharehousing my goods as they will be shipped directly to customer.
My question is about the payment sturcture i want to have, not
distribution of goods.

Please find out if banks can handle the l/c, i know several types of
l/c are in practice so please enquire the banks giving them the
"Business Scenario for L/C" which i gave in my question.

thanx

---

Clarification of Answer by larre-ga on 03 Jun 2004 22:33 PDT

I spoke with two U.S. bankers in the course of my research today. 

I will inquire further, however, letters of credit are not commonly
used within the United States. These types of transactions are handled
by privately chartered companies, since banks are quite strictly
regulated under US banking laws.

I will post the results of my inquires as soon as possible. 

---larre

---

Clarification of Answer by larre-ga on 04 Jun 2004 00:19 PDT

Thank you for your patience. 

After further consultations, I have located the following banks that
will expedite document transactions, however, specifics will have to
be negotiated individually with the bankers. Most offer first contact
via e-mail.


Hibernia National Bank - International Banking
----------------------------------------------------------------------

Hibernia Bank provides:

Trade Finance
Foreign Exchange
Letters Of Credit
Standby Letters of Credit
Foreign Drafts
International Funds Transfer
Documentary Collections
Clean Collection and Cash Letters 

http://www.hibernia.com/Common/Pages/Hub_Site_Front_Door_A/0,2499,3584_0_31231_0,00.html

For Additional Information, Please Contact:

Jan Tanner
Vice President, U.S. Importers/Exporters
Hibernia National Bank
313 Carondelet Street
New Orleans, LA 70130
Tel: (504) 533-5869
Fax: (504) 533-5212
E-mail: jtanner@hibernia.com

Tina Genovese
Export Trade Finance Administration
Hibernia National Bank
313 Carondelet Street
New Orleans, LA 70130
Tel: (504) 533-5545
Fax: (504) 533-5212
E-mail: tgenoves@hibernia.com



Bank of America Trade Services 
----------------------------------------------------------------------

-- Import letters of credit minimize payment risk and ensure that the
   goods you ordered from your overseas supplier are shipped according
   to the agreed upon terms before you pay. 
-- Trade Direct, fully integrated with Bank of America Direct®, offers
   an Internet based solution for cross-border activity management,
   for the full range of trade banking services, providing real time 
   access through the latest browser technology.  
-- Trade Direct lets you apply for your LCs via your browser and 
   receive payment and amendment details electronically. 
-- Purchase Order-to-Pay Services replaces paper-based functions with 
   electronic processes. It supports more settlement options such as
   open account payments as well as traditional letters of credit. 
-- Purchase Order-to-Pay also links all of your supply chaining 
   partners into an end-to-end payment and settlement process for 
   increased transparency and visibility throughout the supply chain.
-- Private Label Letter of Credit services support both corporate and
   financial institutions clients. 
-- Import documentary collections offer a secure alternative to the 
   risk of prepaying for your orders without tying up your credit
   facility and are used when you are dealing with a trading partner 
   you know and trust.

Bank of America Trade Services & Contact Form
http://corp.bankofamerica.com/portal/portal/controller/controller.jsp?path=wcm%2Ftrade_srvcs%2Fcontent.xml&tabID=42

Select the "Contact Us" link at the top of the page, and select the
appropriate contact source from the choices offered in the pop-up
window.


Chase / JP Morgan International Trade Services
----------------------------------------------------------------------

Chase offers the following International Trade Services:

  
? Import Letter of Credit   
? Export Letter of Credit   
? Standby/Performance Letter of Credit (Guarantee)   
? Standby/Financial Letter of Credit   
? Bankers Acceptance   
? Documentary Collections   
? Export Credit Agency 

Trade Services and Letters of Credit
http://www.chase.com/cm/cs?pagename=Chase/Href&urlname=middlemarket/productservices/intltrade

Contact Form
http://www.chase.com/cm/cs?pagename=Chase/Href&urlname=middlemarket/clientcenter/emailus


Fleet
----------------------------------------------------------------------

"Trade Online Services Fleet's Trade Key® Online electronic trade
system allows importers and exporters to initiate and receive letters
of credit, documentary collections and open account trade payments
from anywhere in the world.

Trade Tools for Existing Customers Existing customers can access a
resource center for helpful tips and information to assist in
performing trade initiatives with Fleet.

Trade Products for Importers Fleet offers a full range of products to
serve the needs of importers, including letters of credit, import
collections, electronic trade payments and standby letters of credit.

Trade Products for Exporters Fleet also provides the full range of
products to service the requirements of exporters, including letter of
credit advices, export collections, standby letters of credit,
pre-export financing and post-export financing.

Standby Letters of Credit Fleet issues Standby Letters of Credit and
Guarantees* in support of a variety of customer obligations. Examples
of Standby Letters of Credit and Guarantees include support for bid
bonds, performance bonds, unpaid invoices and loan and lease
agreements."

Fleet International Trade Services
https://commercial.fleet.com/cgi-bin/icrpprd.dll/Ctrl.jsp?page=ProductView&chan=IntlServ/GlobalTrade&prog=is_gt_Overview&BV

Forms and Agreements are available on the website. You may contact
Fleet Trade Specialist via email at: globaltrade@fleet.com


LaSalle Bank
----------------------------------------------------------------------

LaSalle Bank offers a full suite of Trade Services:

Import letters of credit to provide your suppliers with assurance of
payment while making sure that they deliver what you expect

Export letters of credit to give you the comfort of knowing that you
will be paid upon shipment to your overseas buyer

Documentary collections -- a flexible method of payment that delivers
our global network as your collection agent and doesn't absorb a
buyer's credit line

Standby letters of credit and advice to strengthen your bids and lock
in contracts around the world

Authorities-to-Pay to trigger overseas payments to your suppliers only
after they have shipped, without gobbling up your credit line

LaSalle MaxTradSM LaSalle's Web-based global supply chain platform
through which importers and exporters can access our e-commerce
products and services.

LaSalle Bank - Commercial - International Trade
http://www.lasallebank.com/commercial/int_trade.html

LaSalle Bank - Contact Us
http://www.lasallebank.com/commercial/contact_commercial.html


National City Bank
----------------------------------------------------------------------

Trade services:
  Import/export letters of credit 
    Reduce the payment and collection risks of international trade. 
  Documentary collections 
    Track foreign receivables, change trade terms, obtain up-to-date
    payment information, minimize red tape. 
  Trade financing 
    Assistance with pre-export financing, supplier and buyer 
    financing and U.S. government export-assistance programs. 

National City Corporation International Services
http://www.nationalcity.com/corporate/InternationalServices/default.asp


Wells Fargo Bank
----------------------------------------------------------------------

Trade Services:

Trade Services Online (TSOL) is the Internet-based service for letters
of credit and documentary collections. TSOL lets you:

-- Receive export letters of credit and advices.
-- Prepare and send new L/C applications and amendments.
-- Create direct collection instructions and drafts.
-- Manage outstanding letters of credit and incoming/outgoing
   documentary collections.
-- Track letters of credit and documentary collection transactions. 
-- Create reports in a variety of formats to download to your computer 

Wells Fargo Trade Services
http://www.wellsfargo.com/com/ceo/trade_services/index.jhtml

Wells Fargo Banking Contact Form
https://www.wellsfargo.com/com/contact_us.jhtml


I hope that these services are on-track. My apologies for incomplete
information on the first go. Again, I welcome questions and will be
glad to clarify as needed.

---larre

Dear ramji04-ga

I am also looking for a similar kind of arrangement.

ramji04-ga

If your supplier is directly shipping to the buyer, wont they come to
know each other in any case(from the export/shipment documents)?

well, they will know becuase one cant change the export dox !

It seems what you need is a back-to-back letter of credit. Look for a
bank that provides this type of letter of credit service.
www.letter-of-credit.net