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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If the consignee on the Bill of Lading is specifically named eg: As is the case with other documents, if the issuer of an inspection ctedit is not specified within the letter of credit, the bank will accept such document as presented.
You are commenting using your Twitter account. Must indicate the name of the consignor and address.
Claims should be made payable in India or in the specific city specified in the LC. Air Waybills also known as Air Consignment Orrigin are obtained from airlines whilst Sea Waybills are issued by a shipping company.
It can show the consignor as a third party other than beneficiary. Airway Bill or Airconsignment Note Must show flight number and date.
It acts as a receipt ov the goods and provides evidence of a contract of carriage. It should be drawn in the same currency of LC, unless otherwise specified.
We strongly recommend you provide your customers with copies of these guides to back-up your own discussions with them. Indicate the place of shipment and the place of destination stated in the documentary credit. It should be drawn by the beneficiary or any other person authorized in this regard.
Notify me of new comments via email. The requirements for different types of transport documents presented under Letters of Credit are laid down in UCP Articles Indicate the place of issuance. This checklist is intended to help export sales representatives establish a letter of credit with the customer that is clearly understood.
Common Letter of Credit Documents
Show shipper as a third party other than beneficiary. UCP contains the rules for the use of letters of credit. One or more of the following checkpoints may thus be overridden by conditions stipulated in your particular credit. The main reason for this is matters that could have been put right, had the credit been checked early enough, were not put right.
It should show deduction towards agency commission payable etc. When will the Advising Bank Pay? 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 bank. 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. The Insurance Certificate stipulates lettdr amount of insurance, the goods insured and risks covered. Unless otherwise stipulated, neither the proforma invoice nor the contract will form part of the letter of credit article 4, UCP Any partial shipment is effected?
Letters of Credit – Checklist and Guide for Export Sales Executives – Sit Pro
It has three key functions:. Whether the document certifies the facts required as per LC or not. It must confirm to facts like IEC No.
A guide to applying for a letter of credit for imports. Must indicate Airport of loading and discharge. This checklist is intended primarily for use in export sales and shipping departments.
Where there are any inconsistencies with this guide, UCP will prevail. 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.
Nevertheless, the buyer is in effect being asked whether, after all, they still want the goods and is prepared to accept the discrepancies in the documents. Unlike Bills of Lading, Waybills are neither negotiable nor documents of title.
Road transport documents must appear to be the original for consignor or shipper. Should not be claused it should be clean AWB. Must bear the number of the LC.
Bill of Exchange Draft It should bear a date.