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...
Document Issued or Countersigned by the Applicant: What are the Risks?
What are the risks of a document which is to be issued, signed or countersigned by the applicant in a letter of credit transaction?
In...
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...
5 Biggest Letter of Credit Mistakes
In international trade, there are couple of payment options available such as cash against documents, open account, advance payment and letter of credit.
Letter of...
Complying Presentation
What is a Complying Presentation?
If issuing bank determines that the presentation is complying then the issuing bank must honor. If credit is available by...
Correct Addresses of the Beneficiary and the Applicant
When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in...
Shipping Documents
Shipping documents, when used as a term in a letter of credit, could create problems between the issuing bank and the beneficiary due to...
What Happens if Due Date of a Letter of Credit Falls on a Bank...
Letter of credit is a conditional payment method. It is only payable if the issuing or confirming bank determines that the presentation is complying.
Once,...
What Does Full Set of Bills of Lading Mean?
Under an ordinary letter of credit, the issuing bank demands a full set of clean shipped on board ocean bills of lading from the...
How Does an Import Letter of Credit Work in International Trade Transactions?
On this page, I will try to answer the question “How Does an Import Letter of Credit Work?” by explaining the import letter of...
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