Article Index
Letter of credit
Terminology
How it works
Step-by-step process
Availability
Some of the Documents Called for under a LC
Legal principles governing documentary credits
Legal Basis for Letters of Credit
Letter of Credit Characteristics
Risk situations in a DC transaction
Parties To A Letter Of Credit
Types of Letters of Credit
Common Problems with Letters of Credit
Basic Procedures for Establishing a Letter of Credit
The Letter of Credit Application
Opening a Letter of Credit
Amendment of a Letter of Credit
Receiving A Letter Of Credit
Common Mistakes Made With Letters Of Credit
Tips for Exporters
All Pages

Tips for Exporters

 

 

• Communicate with your customers in detail before they apply for letters of credit.
• Consider whether a confirmed letter of credit is needed.
• Ask for a copy of the application to be fax 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 at least three time constraints - the expiration date of the credit, the latest shipping date and the maximum time allowed between dispatch and presentation.
• If the letter of credit calls for documents supplied by third parties, make reasonable allowance for the time this may take to complete.
• After dispatch of the goods, check all the documents both against the terms of the credit and against each other for internal consistency.