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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Letters of Credit – Checklist and Guide for Exporters – Sit Pro

The checklist designed for importers is to be used by purchasing staff when applying to local banks for letters of credit. You are commenting using your Facebook account. Under UCP rules, banks require documentary evidence to support such conditions.

Issued by a railway authority for the transportation of goods by rail, a Certficate Consignment Note evidences that the goods have been received by the carrier for onward transportation. Learn how your comment data is processed. It should be drawn by the beneficiary or any other person authorized in this regard.

Meet all other stipulations of the credit. Post was not sent certifkcate check your email addresses! Any letter of credit requirements which are still not clear should be referred to your bank for clarification without delay. If the document does not state the number of originals, the number presented will be taken as the full set. Indicate the name of consignor and his address. We use cookies to ensure that we give you the best experience on our website.

Letters of Credit – Checklist and Guide for Export Sales Executives

The invoice provides details and price of the goods that form the basis of the trade transaction. The checklist designed for importers is to be used by purchasing staff when applying to local banks for letters of credit.


Similarly, transport documents marked as Original, Duplicate, Triplicate etc.

Initial Scrutiny All documents called for in LC are submitted. The goods will be released to the named consignee eg: Documents are presented at the place of expiry stipulated in the LC. Having assured yourself on these points, proceed with certificxte key checks. It is not a document of title.

Crdeit of Lading Be issued by a named carrier or his authorized agent. Where there are any inconsistencies with this guide, UCP will prevail.

Common Letter of Credit Documents

It should unless otherwise specified be made out in the name of the applicant. Must indicate brief details of the goods insured. If so whether it was permissible under LC. It is vital that information shown on other related documents is consistent eg: When will the Advising Bank Pay?

At an early stage, it will be in your best interests to send a copy certififate the credit to your forwarder or whoever will obtain the transport documents. You are commenting using your Twitter account. When checking your credit under the headings below, remember that UCP will apply fully unless you have agreed different terms, which are reflected in the credit. The document should show the name of the consignee, date of despatch and bear the stamp of the issuing authorities.

Unless you can correct discrepancies in time you will lose your right to payment under the credit and all the cost and effort to obtain security will have been wasted. The requirements for different types of transport documents presented under Letters of Credit are laid down in UCP Articles Air Waybills also known as Air Consignment Notes are obtained certigicate airlines whilst Sea Waybills are issued by a shipping company.


The applicable content of ISBP We strongly recommend you provide your customers with copies of checkliet guides to back-up your own discussions with them. It is made out by the seller beneficiary under a Letter of Creditusually on his own headed paper, in the name of the buyer applicantunless a Letter of Credit instructs otherwise.

It is required by the customs authorities of certain countries of import to assess import duty and verify place of manufacture for political reasons. Risks for banks and exporters.

Under UCPwhether a credit is available by sight payment, deferred payment, acceptance or negotiation, a credit can be available with any bank.

Common Letter of Credit Documents – MJ Hayward

Any letter of credit requirements which are still not clear should be referred to your bank for clarification without delay. If issued in more than one originals, all originals must be submitted no. Indicate the date of issuance. It is recommended that the details of the credit be recorded at this point so that a progress check can be updated right through to presentation of the final documents to the bank for payment.

It must indicate that it is drawn under the subject LC. Kindly note the below checklist is only illustrative and not exhaustive. Working through the checkpoints set out in the various sections of the guide will help reduce discrepancies and associated unplanned costs. The applicable rules of UCP Goods description does not conflict with the documentary credit. Indicate the place of shipment and the place of destination stated in the documentary credit.

This can cause expensive delays for both the exporter and the importer and may even result in a lesser payment or no payment at all.