Export procedures ! Export documents ! Export documentation !

Export documents require careful preparation to avoid delays in customs clearance at their port of discharge and also to comply with documentary letters of credit that specify conditions such as precise product descriptions, packing lists and attestations including quarantine certificates and certificates of origin.

Electronic documentation has made a complex process much easier, but mistakes can be costly. It is imperative to understand the export documentation process and to ensure that the preparation of documentation is carried out with meticulous accuracy.

The Exporter should appreciate that this list is not exhaustive but is offered as general guide to help in the preparation and examination of documents that could be required by the Documentary Credit.

For the bank which receives the documents:

The Letter of transmittal

Ensure:

That it is addressed to your bank

That it has a current date

That it relates to the Documentary Credit number referenced

That the documents enumerated are attached

That the value of the documents and the value mentioned in the cover letter are the same

That the bank (if any) remitting the documents is acting as Paying, Accepting, Negotiating, or remitting Bank.

That the payment instructions are clear and understood.

Whether any discrepancy (ies) have been noted and whether payment, accdeptance or negotiation was effected against an indemnity or under reserve.

For the bank and the Beneficiary:

The Documentary Credit

Ensure:

That is the correct referenced documentary credit,

That it is still valid ( not expired/ cancelled ) ;

That the available balance in the documentary

Credit is sufficient to cover the value of the drawing ;

That the document required by the documentary credit are presented,

That no amendments or previous draw downs are in a questionable state.

The Draft

Ensure

That the draft bears the correct documentary credit reference number,

That it has a current date

That the signature and/or the name of the drawer corresponds with the same of the Beneficiary,

That it is drawn on the correct Drawee

That the amount in figures and words corresponds,

That the tenor is as required by the Documentary Credit

That the name of the payee is identified

That if it required as endorsements it is properly endorsed

That there are no restricted endorsements

That it contain any necessary clause as required by the Documentary Credit

That the value of the draft and the invoices corresponds

That it is not drawn ``without recourse” unless authorized by the Documentary Credit.

For the Bank and the beneficiary

The Invoice

Ensure

That it is issued by the Beneficiary of the documentary Credit

That the Applicant (the buyer) is indicated as the party, unless otherwise stated in the Documentary Credit

That it is not titled “ proforma” or “ provisional” invoice

That no additional detrimental description of the goods appears that may question their condition or value

That the currency of the invoice is the same as that of the documentary Credit, that the value of the invoice corresponds with that of the draft

That the value of the invoice does not exceed the available balance of the Documentary Credit

That if required by the Documentary Credit the invoice is signed, notarized, legalized, certified etc.

That the correct number of original (s) and copy (ies)is presented.

For the Bank and the Beneficiary:

Frequently Asked questions on Export & Import

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