How to Open a Letter of Credit?
On this page, I will try to answer the question "How to open a letter of credit?" by explaining the lc application process in...
Freight Forwarder’s Bill of Lading Not Acceptable
Some issuing banks add an additional condition to the letters of credit they have issued, indicating that freight forwarder's bill of lading is not...
Comparison Between the Partial Shipment and Transshipment
Definition of Transshipment: Transhipment means unloading from one means of conveyance and reloading to another means of conveyance during the carriage as enrouted in...
Importance of Bill of Lading Title: Ocean or Marine Bill of Lading
Issuing banks often require an ocean bill of lading or a marine bill of lading under letters of credit as a transport document.
The question...
Date of Shipment
Date of shipment is used to determine;
whether shipment made on time or not (in other words a late shipment has been effected or...
Partial Acceptance of Amendments
According to the letter of credit rules, the beneficiary should communicate its acceptance of the amendment to the bank that advised such amendment.
The beneficiary...
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...
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...
What are the Differences Between Bank Guarantees and Letters of Credit?
Demand guarantee is an irrevocable undertaking issued by a bank according to instructions received from the principal, to pay the beneficiary any sum that...
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...
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