CHAPTER 17
Document Checklists a series of checklists for document preparation and examination by the buyer, seller, and advising and issuing banks. They are not fully comprehensive as there are an almost infinite number of transaction variations possible, some of which require specialized procedures and documentation. Therefore, they should be viewed only as a general guide.
THE FOLLOWING IS
SELLER/EXPORTER/BENEFICIARY
The seller/exporter/beneficiary has the responsibility of preparing and presenting documents in accordance with the terms of the documentary credit or collection. If the documents are incorrect or inconsistent there is a risk of having them refused, wasting time and money, and possibly imperiling the transaction itself.
(BUYER’S) BANK The issuing (buyer’s) bank has the responsibility of examining the documents package presented by the seller/beneficiary to make certain they are consistent with the documentary credit or collection.
ISSUING
ADVISING BANK
The advising bank (often the confirming bank as well) has the responsibility of examining the documents presented by the issuing bank to determine if they are consistent with the requirements of the documentary credit or collection.
BUYER/IMPORTER/APPLICANT
The buyer/importer/applicant first has the responsibility of listing documents that are required of the seller in the documentary credit. Upon presentation by the bank the buyer examines documents for consistency and accuracy. Problems with documents often lead to problems securing goods from the shipping company or customs or receiving unwanted or incorrect goods.
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