CHAPTER 12
Checklists for Key Documents a series of checklists for document preparation and examination by the buyer, seller, and advising and issuing banks. These checklists cover the most common documents and have an emphasis on document consistency in documentary collection and documentary letter of credit payment situations. The issues covered in these checklists, however, apply for document preparation in all payment and transaction situations.
THE FOLLOWING IS
EXPORTER/SELLER/BENEFICIARY
(OF THE LETTER OF CREDIT) The exporter/seller/beneficiary has the responsibility of preparing and presenting documents in accordance with the terms of the contract for the sale of goods, the documentary collection or documentary letter of credit. 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.
IMPORTER/BUYER/APPLICANT
(OF THE LETTER OF CREDIT) The importer/buyer/applicant initially has the responsibility of listing and clearly communicating to the seller which documents are required. Once the document package is received, either directly from the seller, or indirectly from the seller through the banks, the buyer examines the documents for consistency and accuracy. Problems with documents can lead to receiving unwanted or incorrect goods, problems securing goods from the shipping company or clearing a shipment through customs.
(BUYER’S) BANK In letter of credit payment situations, the issuing (buyer’s) bank has the responsibility of examining the documents presented by the seller to make certain they are consistent with the credit.
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.
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