EXPORT LCS

Professional Documents preparation ,Examination and Presentation

RECEIPT OF THE LC PRECAUTIOUS

Upon receipt of a letter of credit the beneficiary must receive a copy of it in haste from his correspondent and make sure of the following :-

The type of credit and all terms and conditions correspond to the sales contract

There are any unacceptable conditions The documents can be prepared in the form required The merchandise description and unit price conform to the sales contract The amount of the credit is sufficient to cover all costs to be borne by the

shipper under the terms of the contract   The latest permissible shipping and expiration dates allow sufficient time

for shipment and presentation of documents to the bank. The points of shipment and destination conform to the sales contract The insurance coverage corresponds to the terms of the sale All names and addresses are shown correctly

More strict precautious measures in revising the LCA credit should not call for documents that

are to be issued and/or counter-signed by the applicant

It is very common for the buyer and seller to pay their own banks fees unless its clearly stated other wise in the contract or preagreements

A credit should be issued with out any delay fine on the beneficiary since most of LC get extended due to external shipping and delays due to internal and external regulations

Contacting the applicant for amendments

Amendments needed should be discussed as soon as possible with the applicant in case there are any corrections needed in the LC conditions and documents required

An authenticated swift including the amendments required must be received by the beneficiary's bank and revised accurately before deciding that the LC is now acceptable and the documents preparation phase should begin

Shipping documents preparation“shipping documents” refers not only to

transport documents but to all documents required by the credit, except drafts.

In the case of a multiple-page document, the signature, if required, can be anywhere on the document unless the LC or the document itself indicates where a signature or endorsement is to appear.

Even if not stated in the LC, drafts, certificates and declarations must be signed.

The covering letter that is addressed to the Beneficiary’s bank attached with the Full shipping documents as per LC conditions and requirements along with a list of the presented shipping documents

The Covering Letter

The Perfect Covering Letter

ESSENTIAL ADDITIONAL Addressed to the

Beneficiary's Bank Current Date and

Officially signed Contain the Letter of

Credit Number /Reference

Indicate the Value/Amount of the Letter of credit adding to Amount required as per documents presented

Indicating Whether any discrepancies are presented

Attached Table of contents including all presented Documents

1-COMMERCIAL INVOICE

Definition :- Non-negotiable commercial instrument issued by a seller to a buyer. Also called a bill of sale or contract of sale, it identifies the both trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts (if any), and delivery and payment terms. In certain cases (especially when it is signed by the seller or seller's agent), it serves as a demand for payment and becomes a document of title when paid in full.

Issued Solely by the beneficiary of the DC

The Applicant full details as per LC is indicated as the invoiced party

Description of Goods Identical to the merchandize description in the LC

(Field:-45A mt.700) Any other Information

Supplied by the Invoice (Marks, Numbers etc, ) Consistent with that of other shipping documents

The currency of the Invoice should be the same as the Currency of the LC

Fully signed and approved internally also legalized and countersigned if indicated in the LC terms

Correct number of Original and copies is presented as per LC conditions

Specify the country of origin if indicated in the LC

The invoice can show a deduction covering advance payment, discount, etc., even if it is not stated in the credit.

Things to take inconsideration when issuing and revising a commercial invoice

Not to be Titled “Pro-forma ,Provisional “

To be titles exactly as stated in the LC “Commercial Invoice”

Additional Description of goods that may raise questions and new conditions

Value beyond or exceeding the available LC balance

Commercial Invoice should be a unique Document and not to be combined with or in another document

If there is no Partial Shipment in the LC the Invoice should cover the whole LC amount

What's Not to be in a commercial Invoice

Packing List

Itemized list of articles usually included in each shipping package, giving the quantity, description, and weight of the contents. Prepared by the shipper and sent to the consignee for accurate tallying of the delivered goods. Also called bill of parcels, packing slip, or unpacking note.

Weight List

Itemized list of Items giving the exact net /Gross weight of the contents.

Prepared by the producer and sent to the seller/Shipper then subsequently to the consignee.

Also called Certificate of weight

We must make sure that each of the Packing & Weight List

is a unique document and not combined with any other document

is signed if a certificate is called for, or as otherwise stated in the letter of credit

the data on them is consistent with that of the other documents .

Expired-documents presented after expiration date of the letter of credit

Late shipment--shipment made after latest allowable shipping date

Late presentation--documents presented more than 21 days after shipment

overdrawn--amount of drawing exceeds amount available under the letter of credit

Merchandise description in invoice differs from that in the credit

Some of the most common documentary discrepancies to avoid

On board” notation on bill of lading not dated Bill of lading showing incorrect consignee Bill of lading shows port of loading and/or

discharge other than ports specified in LC Documents inconsistent with each other Bill of lading, insurance certificate/policy

and/or bill of exchange (draft) are not properly endorsed

Shipping terms (Ex-Factory, FAS, FOB, C&I, C&F, CIF) on invoices differ from those specified in the letter of credit

Set of documents presented under LETTER OF CREDIT incomplete

Thanks & Best Regards

Collected , Assembled and presented byAhmed ShawkyTrade finance section headARESCO