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: Gronris Dolkis
Country: Syria
Language: English (Spanish)
Genre: Personal Growth
Published (Last): 12 October 2006
Pages: 85
PDF File Size: 18.58 Mb
ePub File Size: 19.75 Mb
ISBN: 765-9-77228-629-6
Downloads: 22607
Price: Free* [*Free Regsitration Required]
Uploader: Dataxe

The requisite and stipulated documents are originals or marked as originals and appear to be signed. Post was not sent – check your certtificate addresses! A Bill of Lading is the traditional instrument used in connection with sea shipments.

Must indicate the mode of conveyance Air, Sea, Road etc. Leave a Reply Cancel reply Enter your comment here Learn how certlficate comment data is processed. Bill of Lading Be issued by a named carrier or his authorized agent.

A generic checklist is given below to assist parties involved in the transaction in preparing compliant documents.

How to Prepare and Check Letter of Credit Documents | Buyer’s Credit & Supplier’s Credit

The credit should also stipulate the cresit to be covered by the insurance. The description of the goods must correspond exactly with the description stated in the Letter of Credit article 18c, UCP A Waybill is a document issued by the carrier of the goods or its agent. Appear to indicate the name of the carrier. It must indicate whether freight is prepaid or payable at destination. This checklist is intended to help export sales representatives establish uc; letter of credit with the customer that is clearly understood.


Bear reference by stamp or otherwise to the costs additional to freight charges.

Having assured yourself on these points, proceed with the key checks. It may additionally need to be legalised by the local embassy of the importing ceryificate. Indicate the name of consignor and his address.

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

Similarly, transport documents marked as Original, Duplicate, Triplicate etc. It is vital that information shown on other related documents is consistent eg: If issued in more than one certifucate, all originals must be submitted no.

Air Waybills also known as Air Consignment Notes are obtained from airlines whilst Sea Waybills are issued by a shipping company.

Letters of Credit – Checklist and Guide for Export Sales Executives

The Insurance Certificate stipulates the amount of insurance, the goods insured and risks cegtificate. To check if documents are compliant, banks examine the required documents based on: Working through the checkpoints set out in the various sections of the guide will help reduce discrepancies and associated unplanned costs. It can show the consignor as a third party other than beneficiary. The Policy states the amount of the insurance, the goods insured, the risks covered and all the conditions of the insurance.

The quantity of petter, unit prices, delivery terms etc. Must indicate brief details of the goods insured. 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. All documents are submitted in the requisite number of copies. It should be drawn payable for tenor specified in the LC.

  HIOKI 3555 PDF

It must be dated. The articles also detail further specific requirements such as on board notations, transhipment and payment of freight charges. The currency of insurance must be same as the currency of LC.

Letters of Credit – Checklist and Guide for Exporters

Claims should be made payable in India or in the specific city specified in the LC. However, in other circumstances, the buyer can obtain the goods without the presentation of documents. It should not be issued by brokers. You are commenting using your Twitter 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.

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.

Working through the checkpoints set out in the various sections of the guide will help reduce discrepancies and associated unplanned costs. At an early stage, it will be in your best interests to send a copy of the credit to your forwarder or whoever will obtain the transport documents.

It should show deduction towards agency commission payable etc. The applicable rules of UCP