The key points for the exporter
When it comes to documentary credit transactions, you must make sure that all the relevant terms and conditions are strictly met. In order to ensure bankable security, you would be well-advised to check at the sales negotiation stage which form of documentary credit would be most suitable for you. As an exporter, you should bear in mind the following main considerations in connection with documentary credit transactions.
What is the right form of credit (confirmed or unconfirmed) and what risks need to be covered?
Payment arrangements (payment at sight or, for example, 60 days from shipment)?
Terms of delivery (Incoterms 2000)?
Partial shipments permitted?
Who bears the costs?
The accompanying forms - Proposal for Importer's request to issue a documentary credit confirmed/unconfirmed" - will guide you through the key points to be taken into consideration and can be passed on to your buyer.
Do the terms and conditions of the credit match the delivery contract?
Can all the conditions of the documentary credit be met?
Is the credit confirmed?
Are the terms of delivery correct (Incoterms)?
Is the description of the goods correct?
Are the credit expiry date, final shipment date and presentation deadline as stipulated in the agreement?
Are the documents stipulated in the credit available?
Are the documents in accordance with the terms and conditions of the documentary credit?
Do the documents tally with one another?
Have the provisions of the International Chamber of Commerce's UCP 600 been adhered to?
If you have any questions in this connection, we will be happy to be of assistance. Simply contact our specialists or ask for a copy of our checklist.
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