Measure No 4: Plan the obligations
Proper planning is necessary for the proper implementation of commitments, that is to say it must prepare the products and specified documents, and provide shipment and timely submission.
This is a crucial step, as the export administration service must be able to assume. Its director must be competent; it should have the ability to organize and coordinate the activities necessary for planning; it should be able to manage resources such as adequate funding, a well-trained team, technology and effective procedures.
Measure No. 5: Detect the most common errors in the preparation of documents
In preparing the documentation, make sure you have a competent team and powerful technology. Feel free to browse the following list against to rectify and avoid common mistakes. This list is based on surveys and a thorough study of the Uniform Customs and Practice for documentary credit (UCP 500) issued by the International Chamber of Commerce.
Measure No. 6: Review documents before presenting them
Despite your efforts to create seamless documentation, some errors may remain; must find and eliminate them by careful consideration.
Check the accuracy of documents using a checklist as suggested on page 15. This list must reflect the requirements of UCP 500.
Dates and signatures
Pay particular attention to dates (especially those on the inspection certificate and the insurance document) signatures (especially those affixed on the transport document), and the authenticity of the documents and their consistency . The date of the contract must appear. If the letter of credit specifies that certain documents must be signed, the signature must be present. Moreover, it must be the hand of the person affixed to the required procedure and the right place.
Again, the documents must be complete, consistent with each other and comply with the stipulations set forth the letter of credit and the provisions of the UCP 500. To check consistency, do not hesitate to use a list control. All original documents required by the letter should be (see the comments of the International Chamber of Commerce on Art. 20b if necessary). therefore strictly observe the requirements of the letter and the conditions of UCP 500, because the bank’s inspector strictly held there at the time to review the documents.
Better to prevent and eliminate errors before submission of documents rather than the correct afterthought, or even end up later to justify a failure you had considered insignificant. Indeed, it is better to count with an impeccable record, rather than the whim of the inspector of the bank or the buyer. Contrary to what you think, the bank and the buyer could not pass up a gap that has seemed unimportant.
