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For troublefree letter of credit transactions: |
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Communicate with your customers in detail before they apply for letters of credit. The letter of credit is part of the sales process, not the shipping process! |
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Consider whether a confirmed letter of credit is needed - if in doubt, seek advice. |
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Ask for a copy of the application to be faxed to you, so you can check for terms or conditions that may cause you problems in compliance. |
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Upon first advice of the letter of credit, check that all its terms and conditions can be complied with within the prescribed time limits. |
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Many presentations of documents run into problems with time-limits. You must be aware of up to three time constraints - the expiry date of the credit, the latest shipping date and the presentation period - maximum time allowed between despatch and presentation of documents. |
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If the letter of credit calls for documents supplied by third parties, make reasonable allowance for the time this may take to organise. |
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After despatch of the goods, check all the documents both against the terms of the credit and against each other for internal consistency. |
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Learn more! |
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| How
to negotiate the letter of credit that suits you and not your trading
partner! How to avoid discrepancies by checking documents before presentation |
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