Documentary credits in import
A means of securing performance
If drawn up properly, a documentary credit offers you, the importer, an effective means of securing performance. It is important that the credit is issued on a sound contractual basis, such that the exporter is able to comply with the terms and conditions and that the documents are correctly defined, thus assuring delivery as contractually agreed for the importer.
We will outline the things you need to bear in mind in particular. If you have any questions in this connection, our specialists will be happy to help.
You do not pay until the goods have been shipped. This must be confirmed by the presentation of the documents stipulated in the credit agreement.
You can rest assured that the exporter will do everything within his power to comply with the terms of the credit, otherwise he loses his payment guarantee.
The Uniform Customs and Practice for Documentary Credits (UCP 600) guarantee a uniform international standard for documentary credits.
The documentary credit is a flexible means of effecting payment: almost all trading operations can be hedged in this way.
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