Letter of Credit

Letter of Credit


    Question: We are trying to determine a best practice for handling US exports on letters of credit through a freight forwarder. We have had mixed experiences, and some forwarders are telling us they need a copy of the full L/C to ensure compliance with the terms; in other cases, we have just included instructions to […]


    Question:   Does any one know how specific we need to be for L/C purposes?  For example, if the L/C said: Port of loading: any seaport, USA.  Shall we put “Seattle, USA”, or “Seattle seaport, USA”, since everyone knows Seattle is a seaport. ****************

  • Letter of Credit Q&A 1

    We are in a situation, that I really need the wisdom of the members to help resolve. On a letter of credit, we shipped goods valued over $4000.00 to Ecuador. They were inspected and found in good order. The necessary documents were supplied correctly to the Miami office of Bureau Veritas. When BIVAC-Miami sent the […]

  • Letter of Credit Q&A 3

    For those members who pay vendors with Letter of Credits, how are shortages handled? For example, if your bank receives the proper documentation and pays the vendor after the agreed upon period, but you then find that the vendor short shipped, what do you do? Are there clauses in the LC, do you deduct from […]

  • Letter of Credit Q&A 6

    How are companies complying with LC terms requiring a “Certificate of Origin stamped by local Chamber of Commerce”. Our local chambers won’t stamp blank certificates and the items in most shipments include US and foreign origin goods anyway. We are trying to negotiate out the local Chamber stamp requirement because we see no way to […]

  • Letter of Credit Q&A 7

    My company would like to start penalizing import vendors for late shipments by taking a deduction on the corresponding letter of credit. We understand that in order to do this we first have to include a disclaimer on our purchase order that would alert the vendors that a deduction would be taken in the case […]

  • Letter of Credit Q&A 8

    We pay for our import shipments via letter of credit. We use transaction value and all shipments are moved FOB. We would like to start taking deductions on our LC’s for late shipments. We realize that there is a correct way and incorrect way to do this. My understanding is that we would have to […]