How to obtain letter of credit

how to obtain letter of credit

REQUIREMENTS FOR OPENING LETTERS OF CREDIT

FOR GOODS TO BE SHIPPED FROM HALE, USA, ORDERED ON GODIVA LTD

Unless specifically agreed otherwise, the following procedure should be followed to open a Letter of Credit:-

1) All Letters of Credit should be irrevocable and confirmed by a UK bank, payable at sight at the counters of a UK bank upon presentation of correct documentation

2) Please raise L/C in the name of GODIVA LTD, CHARLES STREET, WARWICK, ENGLAND. Do not show telephone numbers, etc.

3) Documents - we provide as standard an invoice & copy transport document. If additional documents are required which have not been quoted, we reserve the right to recover our costs

4) Please keep the number of documents required to a minimum. Separate shipping weight & packing lists are not normally provided but relevant details are always included on the invoice

5) Please ensure that the description of the goods ordered is accurate and kept to a brief summary and that shipping terms match the value of the credit, e.g you do not call for "freight prepaid" if the value of the credit is "ex works". Terms should be ex USA

6) Please ensure that L/C does not

prohibit the provision of photocopied documents

7) Please note, ALL negotiable documents must be submitted via the advising bank. Under no circumstances will any negotiable documents be forwarded to you direct

8) Unless expressly prohibited by local legislation, please allow transhipment on the L/C. This will allow us to despatch more quickly.

9) Letters of Credit should be valid for shipment for at least a further 28 days after the acknowledged due date to allow us to arrange shipment and obtain documentation. Validity for negotiation of documents should be 21 days after shipment date

10) We have no preference as to the UK bank used - please allow your bank to select their own corresponding bank in the UK as this will minimise your bank charges

11) As goods are of USA origin, they will not qualify for “preferential trade” status with the EU and therefore EUR1/ATR1 etc. documentation CANNOT be issued. Please ensure that such documents are NOT called for on L/C.

Please note that all charges in relation to the L/C are for your account; we cannot action your order until we receive a valid L/C.

COMPLIANCE WITH THE ABOVE CONDITIONS WILL ENABLE US TO TRANSACT YOUR ORDERS WITHOUT DELAY

Source: www.godiva.co.uk

Category: Credit

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