Purpose of Letter of credit (“LC”) is to give payment security to the beneficiary The applicable rules of UCP A generic checklist is given below to assist parties involved in the transaction in . Certificate of Origin. An LC is a contract by which a bank agrees to pay the beneficiary upon the Credits (“UCP”) are international rules published . such as insurance documents and certificates. the LC. 2. Bills of lading are not clean – meaning they bear. As an exporter, how accurate are the letter of credit documents that Practice for Documentary Credits (UCP ), transport documents, A Certificate of Origin is a signed declaration stating the country of origin of the goods.

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Any letter of credit requirements which are still not clear should be referred to your bank for clarification without delay. Should not origgin claused it should be clean AWB.

Letters of Credit – Checklist and Guide for Exporters

Indicate the date of issuance. The articles also detail further specific requirements such as on board notations, transhipment and payment of freight charges.

Where there are any inconsistencies with this guide, UCP will prevail. UCP contains the rules for the use of letters of credit.

Issued for carriage by truck or lorry, a Road Consignment Leyter evidences that the goods have been received by the carrier for onward transportation by road. Any letter of credit requirements which are still not clear should be referred certificatd your bank for clarification without delay. It may additionally need to be legalised by the local embassy of the importing country.


Banks enjoy finding Discrepancies.

Common Letter of Credit Documents – MJ Hayward

It must indicate that it is drawn under the subject LC. A Waybill is a document issued by the carrier of the goods or its agent. It should show deduction towards agency commission payable hcecklist. An Insurance Certificate is issued by the Insurance Company by reference to a comprehensive Insurance Policy and its conditions.

Road transport documents must appear to be the original for crecit or shipper. The invoice provides details and price of the goods that form the basis of the trade transaction. Where local regulations require, or where the exporter insists on a letter of credit, the following points should be discussed:.

Letters of Credit – Checklist and Guide for Export Sales Executives – Sit Pro

It will also be of assistance to those involved in financial and credit management and in production and supply. If the document does not state the number of originals, the number presented will be taken as the full set. They are quite free to refuse.

Indicate the place of issuance. Telephone instructions alone may easily result in misspellings or other errors and consequent rejection by the bank, or even a wrong type of transport or insurance document may be provided.

How to Prepare and Check Letter of Credit Documents

The requirements for different types of transport documents presented under Letters of Credit are laid down in UCP Articles Show shipper as a third party other than beneficiary. Notify me of new posts via email. It should unless otherwise specified be made out in the name of the applicant. We strongly recommend you provide your customers with copies of these guides to back-up your own discussions with them.


Fill in your details below or click an icon to log in: Bill of Exchange Draft It should bear a date. A guide to applying for a letter of credit for imports. Must indicate brief details of the goods insured. Otherwise meets the requirements of article 24 Share this: The quantity of goods, unit prices, delivery terms etc. Must indicate the place of issuance. It should not include any charges which are not permitted by LC.

One or more of the following checkpoints may thus be overridden by conditions stipulated in your particular credit.

Indicate the place of shipment and the place of destination stated in the documentary credit.

Shipment is effected within the time stipulated. Must indicate the name of the consignor and address. A Bill of Lading is the traditional instrument used in connection with sea shipments.

Bear in mind, as mentioned, that over half of credit documents are rejected on first presentation to the banks. Appear to indicate the name of the carrier. Indicate that the carrying vessel is propelled by sail only. It should be drawn payable for tenor specified in the LC. The credit should also stipulate the risks to be covered by the insurance.

If ocean transport oeigin only a part of the complete journey, a Multimodal Transport Document or Combined Transport Bill of Lading can be issued to cover all stages of the journey. It should be drawn in the same currency of LC, unless otherwise specified.