Tips for exporters:
For trouble-free letter of credit transactions:
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!
Consider whether a confirmed letter of credit is needed - if in doubt, seek advice.
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.
Upon first advice of the letter of credit, check that all its terms and conditions can be complied with within the prescribed time limits.
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.
If the letter of credit calls for documents supplied by third parties, make reasonable allowance for the time this may take to organise.
After despatch of the goods, check all the documents both against the terms of the credit and against each other for internal consistency.

Learn more!

How to negotiate the letter of credit that suits you and not your trading partner!
How to avoid discrepancies by checking documents before presentation