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Letter of Credit Basics

Understanding main concepts of letters of credit and most frequently used terms related to L/C payments.

What is a Draft Letter of Credit?

Understanding the Importance of a Draft Letter of Credit A letter of credit is a conditional payment method. An exporter is required to submit documents, which...

Letter of Credit Condition: LCL/LCL Shipment Prohibited

LCL is an abbreviation that is used mostly in international shipping. Its long form is Less than Container Load (LCL). In an LCL shipment, a...

Blank Back Bill of Lading Not Acceptable

A Blank Back Bill of Lading, also known as Short Form Bill of Lading, is a type of transport document that does not include...

What Happens if Letter of Credit is Silent in Regards to the Period of...

Documents must be presented to the nominated banks within allowed time frame under letters of credit payments. Otherwise issuing banks or confirming banks raise late...

How to Complete a Bill of Lading under a Letter of Credit Payment?

Bill of lading is a transport document covering the carriage of goods by sea. Letters of credit rules define 4 different types of bills of...
Approval Basis

Approval Basis

Definition: Approval basis is a letter of credit term used in situations where the beneficiary could not prepare the documents according to the letter...
Freight Notations Under Letters of Credit: Freight Prepaid or Freight Collect

Freight Notations Under Letters of Credit: Freight Prepaid or Freight Collect

The freight notation is a specific reference included in the transport document that indicates whether the shipper has already paid the freight costs in...
Letter of Credit Glossary

Letter of Credit Glossary – Most Frequently Used L/C Terms

You can find most frequently used letters of credit terms on this page. Please click links for further explanations. About Means a tolerance of...
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Advantages and Disadvantages of Letters of Credit

Letter of credit is one of the payment methods in international trade. Just like other payment methods it has certain advantages and disadvantages. Advantages of...
Is it possible to submit 2 bills of lading under one letter of credit presentation?

Is It Possible to Submit 2 Sets Bills of Lading Under One Letter of...

Amer from Ajman (United Arab Emirates (UAE)) asks this question. I would like to thank him once again for this great question. Question: I have...
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