Reasons for Discrepant Presentations for LCs

  Successfully obtaining payment through a Letter of Credit is achieved by submitting documents which conform to the wording and terms of the Credit and in accordance with UCP 600 Read more…

Availability and Presentation with Letters of Credit

Article 6 of UCP 600 deals with the subject of availability and place for presentation for Letters of Credit. Availability has two meanings. The first requires the Issuing Bank to Read more…

Presenting documents under Letters of Credit

A common mistake by inexperienced exporters using Letters of Credit, is to present the documents required to the wrong branch of the bank, or even the wrong bank. It must Read more…

Types and Uses of Letters of Credit

There are various types of Letters of Credit/Documentary Credits which have, over time, been developed to satisfy certain needs of the Buyer and Seller.  Each type of Credit carries primary Read more…

Letters of Credit and ICC Incoterms 2010

  The terms and documentation requested under a Letter of Credit must match the details of the Export Sales Contract.  Factors such as, who is responsible for the freight, goods Read more…

Letters of Credit and the Export Sales Contract

A Sales Agreement/Contract between a buyer and seller consists of a number of terms, the most essential being the seller’s agreement to provide goods to the buyer and the buyer’s Read more…

Basic Definitions used in Letters of Credit

This article provides definitions of phrases relating to the parties involved in a Credit as well as clarifying the different wording used to describe Credits. Credit   –  This is Read more…

Necessary Reference Material for Letters of Credit

Anyone wishing to present correct documents to support a Letter of Credit/Documentary Credit presentation must have access to UCP600, ISBP and Incoterms 2010. 1.  ICC Uniform Customs and Practice for Read more…

How Letters of Credit (Documentary Credits) work

  Letters of Credit, also known as Commercial and Documentary Credits, are used to guarantee payment to the seller and delivery of goods to the buyer.  Payment is exchanged for Read more…

Getting paid using a Letter of Credit – Introduction

By using Letters of Credit an exporter is guaranteed payments from international buyers.  However, four factors need be in place beforehand for this to work. ♦ 1.  The Credit needs to Read more…

Supplying Computer Software under Documentary Credits

Using a Letter of Credit/Documentary Credit to pay for computer software, could be problematic today, due to technological changes which were designed to make purchasing software easier. A Documentary Credit Read more…

Article 14d UCP 600 for Letters of Credits

The rules that apply to Letters of Credit are known collectively as UCP 600.  However, there are challenges with some of the rules (also known as articles). When the Uniform Read more…

Mitigating fraud with Letters of Credit

Although Letters of Credit should guarantee that the right goods are shipped and the shipper gets paid, Letters of Credit can still be used fraudulently.  This article discusses what happens Read more…

Letters of Credit – Assignment of Proceeds

There are three main ways that a beneficiary of a Documentary Letter of Credit (DC) can use the original DC to pay suppliers using the DC itself. The first is Read more…

Letters of Credit and Transport Documents

It’s a good idea, when receiving the Documentary Credit, to check that the transport document required under the Credit conditions can actually be supplied, bearing in mind the form of Read more…

Transferable Letters of Credit – Problematic Documentary Clauses

Occasionally a Letter of Credit might have a documentary clause which could state, for example (or a variation thereof): “Beneficiary must advise us (usually name of issuing bank) value of Read more…

A Weakness of Irrevocable Letters of Credit

Letters of Credit (Documentary Credits) can be complicated.  Submitting compliant documentation is always a challenge.  In some circumstances, however, even when everything has been done correctly, problems can arise.  This Read more…

Certificates of Origin and Letters of Credit

One important point to remember is that the consignee on the Certificate of Origin needs to relate to the delivery address on the invoice. However, what happens when the Letter Read more…