- Is the credit subject to UCP500?
- Are there any terms or conditions within the credit which cannot be met? If so immediate arrangements must be made with your importer for the credit to be amended.
- Can the goods be shipped within the period set by the Letter of Credit?
- Do any documents need to be legalised?
- Can the mode of transport specified be used?
- Can shipment be made from the port/airport specified?
- Are the prices correct?
- Do the credit terms conform with the underlying sales contract?
- Are the names and addresses of both opener and beneficiary complete and correct?
- Is the credit irrevocable on the part of the overseas bank? (under UCP500 this is the case unless stated otherwise)
- Are drawings under the credit negotiable or payable in the UK rather than abroad?
- Are the description, price and quantity of the goods are in accordance with the terms of the contract? (Remember that under-drawing a credit may sometimes cause problems, e.g. if trade discount has been forgotten when the opener instructed his bank)
- Are the insurance requirements of the credit acceptable?
- Can the required documentation be obtained?
- If part-shipments and transhipment of goods are prohibited, can the full quantity of the goods be exported on a vessel direct from the port of loading to the port of destination?
- Can the goods be shipped within the period specified and documents presented to the bank within 21 days from the date of shipment (unless a shorter time is stipulated) but, in any case before the credit expires?
What are the essential checks when the Letter of Credit is received?
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