CHAPTER XXXIII NEGOTIATION OF SHIPPING DOCUMENTS. Instructions for Opening a Letter of Credit Examination of a Letter of Credit Common Discrepancies Negotiation with Discrepancies Documents for Negotiation Presentation of Documents. Negotiation.
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(1) An Irrevocable letter of credit subject to the UCP of the latest version; UCP No. 600 (2007 Revision)
(2) Whether the L/C is to be confirmed by a U.S. bank or not.
(3) The name and address of the beneficiary: in favor of exporter.
(4) Whether the L/C is to be transferable or not
(5) Terms of payment such as at sight or usance
(6) Where negotiation or payment is to be effected
(7) Whether the payment is to be made in U.S. dollars or other foreign currency
(8) What trade terms are to be used: FOB, CFR or CIF?
(9) Coverage of marine insurance: Institute Cargo
Clauses (A) (Similar to All Risks), (B) (Similar to WA), (C) (Similar to FPA), or any special coverage such as a rejection clause
(10) Documents to be required for negotiation
Marine insurance policy or certificate
Ocean bill of lading
Other documents specified in the L/C
(11) Whether partial shipments are allowed or not
(12) Whether transshipments are allowed or prohibited
(13) Presentation period/date: A period of time for presentation of documents after shipment
(14) Ports of loading and unloading
(15) The latest shipment date
(16) The expiry date
(1)Examine the conditions and documents specified in the L/C and determine whether he can meet them or not.
(2) If there are any conditions he cannot meet, request his buyer to amend the L/C asap before he starts manufacturing export goods.
(3) If the L/C calls for a time draft, have the L/C specify that the discount interest for the time draft shall be for account of accountee (importer), when agreement was a sight draft but L/C is opened with a time draft
(4) Exporter should hold off shipping the order until he receives an amendments to the L/C as requested.
(2) Commercial invoices
(2) Commercial invoices (continued)
(3) Packing list
(4) Ocean Bill of Lading
(4) Ocean Bill of Lading (continued)
(5) Marine Cargo Insurance Certificate or Policy
(6) Other discrepancies
(1) Commercial Invoice
(2) Packing List
(3) Ocean Bill of Lading
(4) Marine Insurance Certificate
(5) Any other documents if required by the L/C