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Trade Guide

T/T vs L/C: paying Asian mills safely

Prepayment protection, staged releases and when a letter of credit earns its fee.

Standard textile terms: 30% T/T advance to start production, 70% against B/L copy after SGS inspection passes.

For first-time container orders, L/C at sight moves inspection risk to the bank — worth the fee above ~AED 100k.

Never release balances before pre-shipment inspection. Our rule: no SGS pass, no wire — written into every PI.

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