Receiving A Letter Of Credit

• Here is a partial list of questions you need to ask once you have received a letter of credit.
  • Is the letter of credit irrevocable?
  • Is the letter of credit at sight?
  • Do you trust the Paying Bank?
  • Can you convert the currency to your currency?
  • Are the value and quantities correct?
  • Are the shipping terms correct?
  • Can you provide the required documents?
  • Are the letter of credit fees as you had agreed?
  • Is the merchandise correctly described?
  • Is there sufficient time to meet the shipping date and expiration date?
  • Are the shipping terms correct?
  • Specify which documents that are required for payment.

• Do not ship the goods if you are unable or unwilling to meet all the conditions stated in the letter of credit.
  • Request an amendment to the letter of credit.

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© 2004 John Michael Pierobon

Notes