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.

Author: Digrel Voodoogal
Country: Malta
Language: English (Spanish)
Genre: Career
Published (Last): 10 June 2017
Pages: 312
PDF File Size: 5.93 Mb
ePub File Size: 9.34 Mb
ISBN: 577-7-83564-506-4
Downloads: 44921
Price: Free* [*Free Regsitration Required]
Uploader: Fauzahn

Must indicate Airport of loading and discharge. Any partial shipment is effected?

The description of the goods must correspond exactly with the description stated in the Letter of Credit article 18c, UCP Must indicate brief cerfificate of the goods insured. Having assured yourself on these points, proceed with the key checks. Discrepancies across documents will also be easier to rectify if export documentation software is used! To ensure a letter of credit is workable, trouble-free and provides security of payment, it is essential to take simple yet effective precautions at the start.

Any reference in the invoice to a proforma invoice or a contract does not imply that banks will examine the connection between the different documents.

If you are still unclear as to what the wording of the credit implies check what UCP has to say on the point and with the UK lettwr. As is the case with other documents, if the issuer of an inspection certificate is not specified within the letter of credit, the bank will accept such document as presented. Unless otherwise stipulated, neither the proforma invoice nor the contract will form part of the letter of credit article 4, UCP The goods will be released to the named consignee eg: Otherwise meets the requirements of article 24 Share this: Must be issued by a named carrier or his authorized agent.


How to Prepare and Check Letter of Credit Documents

Indicate the place of issuance. The requisite and stipulated documents are originals or marked as originals and appear to be signed. In order to represent the sales contract properly, complete the bank application form with your customer, watching for points in the following list.

Any letter of credit requirements which are still not clear should be referred to your bank for clarification without delay. Under UCP rules, banks require documentary evidence to support such conditions. The document should show the name of the consignee, date of despatch checkist bear the stamp of the issuing chscklist. Rail or inland waterway transport documents do not need to be marked as original in order to be accepted as original. Leave a Reply Cancel reply Enter your comment here Appear to indicate the name of the carrier.

You are commenting using your Twitter account. The checklist designed for importers is to be used by purchasing staff when applying to local banks for letters of credit. Be a claused Bill of Lading.

To check if documents are compliant, banks examine the required documents based on: The terms and conditions of the documentary credit. This normally constitutes chec,list certificate or declaration issued by the beneficiary that they have fulfilled such conditions.


It should show deduction towards agency commission payable etc. Where there are any inconsistencies with this guide, UCP will prevail.

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

It should be drawn by the beneficiary or any other person authorized in this regard. Indicate that the carrying vessel is propelled by sail only.

When will the Advising Bank Pay? It is not a document of title and the goods will be released to the consignee upon application and production of suitable identification. Airway Bill or Airconsignment Note Must show flight number and date. You are commenting using your Facebook account. Issued by a railway authority for the transportation of goods by rail, a Rail Consignment Note evidences that the goods have been received by the carrier for onward transportation.

Such documents are issued by a Multimodal Transport Operator and cover at least two eltter modes of transport.

Post was not sent – check your email addresses! It can show the consignor as a third party other than beneficiary. Must comply with all other specific requirements of LC. The currency of insurance must oriigin same as the currency of LC. Working through the checkpoints set out in the various sections of the guide will help reduce discrepancies and associated unplanned costs. Documents are presented within the expiry date validity of the credit.