Letter of Credit Basics

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

Bill of Lading Stating That All Originals Must be Surrendered

L/C Demands a B/L Stating That All Original B/Ls Must be Surrendered

A negotiable bill of lading is a bill of lading where the consignee’s name is preceded by the words “to order,” thus allowing the...
Means-of-Conveyance-and-Mode-of-Transport

Means of Conveyance and Mode of Transport

Modes of Transport is a term used to distinguish substantially different ways to perform transport. The most frequently used modes of transport in international trade...
letter of credit calls for a wrong Incoterms

What Happens If a Letter of Credit Calls For a Wrong Incoterms?

Daily practice shows us that Incoterms are not used in a correct way as per ICC rules. Exporters and importers frequently use wrong incoterms in...
Partial Shipment

What is a Partial Shipment?

On this post, I would like to explain partial shipments in letters of credit. You can find detailed explanations regarding the definition and conditions of...
letter of credit risks

Risks in Letters of Credit

Documentary credit is an essential part of the export process. The documentary credit system has been used for over a hundred and fifty years, and still plays a...
Reimbursement and Reimbursing Bank

Reimbursement and Reimbursing Bank

What Does Reimbursement Mean? Reimbursement is defined as a compensation paid to someone for an expense. In order to be reimbursed by another person or organisation,...

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...

Top 10 Letter of Credit Discrepancies

Discrepancy can be defined as an error or defect, according to the issuing bank, in the presented documents compared to the documentary credit, the...
How to determine date of shipment on a Non-Negotiable Sea Waybill?

How to Determine Date of Shipment on a Sea Waybill?

Date of shipment is one of the key definitions in a letter of credit transaction. It is used to determine whether shipment made on...
clean on board

Clean on Board Notation on Bills of Lading

What is clean on board? A clean transport document or a “clean on board” clause relates to the condition of the goods and/or packaging. If, on...
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