Measure No. 7: Submit documents appropriately
Be sure to present the case in the time limit, the right place and, of course, taking into account the banks of schedule. Indeed, remember that good time management means good performance of obligations.
Measure No. 8: Conduct regular monitoring
Strict monitoring is essential for the proper performance of a contract. Take action that transactions are not consistent. If you fear an unexpected delay in your letter of credit related commitments, seek to amend and extend the time. As soon as you notice a problem in performance of the contract, notify the buyer.
Services of the marketing and export administration should arrange for the performance of contract work.
In conclusion, a duly established documentation improves the flow of cash.
Export letters of credit – Ten Common Mistakes
1. The calendar is not respected, eg shipping, or the submission of documents is delayed.
2. The documents listed in the letter are not prepared in accordance with, apart from the transport document, the insurance document and the invoice.
3. The certificates of origin for example or inspection, are not signed.
4. The description of the goods on the invoice does not match that of the letter of credit.
5. Order documents are not properly endorsed.
6. Drafts and bills of exchange are not presented in accordance with the provisions of the letter of credit, or they are not properly transferred.
7. The insurance document is dated after the date of shipment, or risk coverage is not that specified by the letter: the type of risks, the extent of coverage or the currency of the sum insured do not agree with what is written in the letter of credit.
8. The transport document is not signed by the UCP 500, or is not established in accordance with the letter of credit.
9. The documents have no coherence between them.
10. The type and number of required documents and their copies are not identical to those stipulated in the letter of credit.
