Letters of Credit
Checklist for Exporters

By answering the following questions, you will have a better idea of your needs as an exporter.

• Does the credit correspond with the purchase agreement in respect to price, method of shipment, product description, terms of sale and Incoterms (i.e., FOB, CIF)?
  
  
• Is the amount of the credit sufficient? (Contract Amount plus the amount of freight, insurance and all handling fee's or other necessary charges)
  
  
• Can the documents requested in the credit be provided in exactly the form required?
  
  
• Can your shipping company or freight forwarder provide the type of transport documents specified in the credit?
  
  
• Can you meet the terms and conditions of the letter of credit within the validity of the credit (i.e., latest ship date, expiry date, and presentation date)?
  
  
• Can the specifications as to the place (port) of loading/receipt and place (port) of unloading/destination be met as requested in the credit?
  
  
• Can stipulations on possible partial shipments and transshipments, or the prohibitions thereof, be met?
  
  
• If the credit requests that you provide insurance for the shipment of goods, can you meet that criteria?

If you have answered "no" to any of the above questions, you may have to negotiate with your buyer in order to have the terms and conditions of the credit amended.