Here is the correct order and explanation, presented in English:
Corrected Sequence and Explanation
There is an apparent inconsistency between the two clauses. However, in standard practice, they work together in the following sequence:
- Guarantee Phase:
- The buyer issues an SBLC (Standby Letter of Credit) to the seller.
- The seller’s bank approves (confirms) the SBLC.
- After the SBLC is approved, the seller is authorized and obligated to begin loading the goods. (This is your second point).
- Payment Phase:
- Loading is completed and the shipping documents (Bill of Lading, SGS Certificate, etc.) are issued.
- The seller presents these documents to the bank.
- The main payment is made at the port of loading, based on the presented documents (B/L, SGS certificate, etc.). (This is your first point).
Final Integrated Summary
In simple terms, the SBLC acts as a security guarantee, not the payment method itself. Therefore, the correct and logical integration of the two clauses is:
“Loading commences only after the seller’s bank approves the SBLC. Subsequently, the payment is made at the port of loading against the presentation of the shipping documents, including the Bill of Lading and SGS Certificate.”
To summarize the workflow:
- First: Security – The SBLC is issued and approved.
- Second: Operation – Loading begins after SBLC approval.
- Third: Payment – Payment is effected against the shipping documents.
To avoid any ambiguity in the contract, it is highly recommended to combine these two points into a single, clearly defined payment clause.
