| For
trouble-free 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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