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Secure payment for exports made to US customers

New York, NY |

We are a brazilian trading company with customers in the US. Nowadays, payments for container loads are in advance. We have already checked reputation and decided to provide terms. But how can I secure payment? How can a Lawyer help me with that?

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Attorney answers 1

Posted

There are numerous ways this is normally done.

The most traditional is to provide for payment under an irrevocable letter of credit, either "sight" or "time", e.g. 30 days.

The alternative is to establish a security interest under Article 9 of the Uniform Commercial Code which each state has adopted (with some variations) which includes but is not limited to filing a UCC-1.

Avvo has some very good business/foreign trade attorneys in New York under the "Find a Lawyer" function button below.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

Asker

Posted

Hello Michael, LCs seem not to be very popular among US customers. We offered this variation may times and they always said it was "expensive", also when the purchasing agreement was over USD 500,000.00. I would like to know more about the security interest and how it works if: - company is loated overseas - company is located in US state. May be you can help us. Fernanda

Michael Charles Doland

Michael Charles Doland

Posted

The location of the debtor is not material. Each agreement can specify a law which applies and to which a security interest will apply, but if you are using a port in NY, which I infer from your posting, you will want one of my Avvo colleagues in New York. They will probably prepare a sales agreement beneficial to the seller in your comodity sold by the container load. They will have in their computer security agreements and UCC-1 filing documents, now national and standardized with the latest updates. The only reason I don't use at least four of my NY colleague's names is I worry about leaving someone out! If you ever need representation on the West Coast, we are on the list of the Brazilian Consulate here in Los Angeles.

Michael Charles Doland

Michael Charles Doland

Posted

Two at least would be Luca Melchionna Frank Natoli

Asker

Posted

Tks Michael, but actually we use California as the entry port of most of our merchandise. And specifically one big importer is in Texas. If I export goods through port in different States, must I have attorneys in each of these States? Would't it possible to have only one law firm handling that all?

Asker

Posted

ANd secondly, if i opne a subsidiary of our company in the USA, hold starage in California and sell to States such as UTAH, is it possible to use this instrument for domestic sales? I presume yes...

Michael Charles Doland

Michael Charles Doland

Posted

Any US entity (LLC or corporation) can be used for all business purposes not requiring a license (e.g. doctor, lawyer, CPA, bank insurance company) which includes domestic sales. Unless you will have a physical presence in California I hestitate to recommend a California business entity because of our tax regimine, but if you have an office or employee here there is no getting around it. doland@dolandlaw.com

Edwin Drantivy

Edwin Drantivy

Posted

It seems as if a Security Agreement may accomplish your goal. If you need assistance with a secured transaction in New York, feel free to call the Drantivy Law, Firm, PLLC at (718) 375-3750.