How many Parties are involved in Letter of Credit (LC) There are mainly 6(six) parties involved in a letter of credit which may be summed up as under: a) Opener: The applicant of L/C or the Importer / Buyer / L/C applicant. b) Opening Bank: The Bank opening the L/C […]
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What is Letter of Credit ? Types and Parties involved
What is Letter of Credit ? Type and Parties involved WHAT IS LETTER OF CREDIT? L /C is an undertaking given by a Bank on behalf of its customer to pay a certain sum of money to a certain person ( Beneficiary ) on the fulfillment of certain terms and […]
Read moreThe features of documentary credits
The features of documentary credits The features of documentary credits: Some features and conditions are fundamental to all documentary credits; others, by means of the insertion of clauses or a recognised form of wording, provide a speciality function. A number of these characteristics are provided for within UCP 600 and ISP98, but others […]
Read moreThe history and use of documentary credits
The history and use of documentary credits Learning objectives: What is the history and use of documentary credits? This chapter includes a brief history of the documentary credit, insight into currently available statistics (2013 data) and the types of transaction for which a documentary credit is often chosen as the […]
Read moreStep of Letter of Credit Opening
Step of Letter of Credit Opening Step One: If any importer wants to open a L/C, the importer is to be a customer of the bank and the importer will maintain a Current Account. Step Two: Importer submits an application requesting for opening L/C for US$. …….. for import of […]
Read moreDiscrepancies of Letter of Credit
Discrepancies of Letter of Credit Common discrepancies in the export documents Claused/unclean/foul/dirty Bill of Lading. Charte–party/stale/third party Bill of Lading (Unless stipulated in the letter of credit ) ON BOARD notation in B/L updated/unauthenticated. Shipment effected from the port other than that stipulated in the credit. Goods shipped on deck […]
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