| Key Stage 6. Shipping documents are prepared and submitted to the
Advising Bank by the Exporter
When all details of the transaction have been decided, the goods
are despatched. The Exporter then prepares the shipping documents
and submits them to the Advising Bank.
Preparation of Shipping
When assembling the documents for presentation to the bank, the
Exporter must make sure that the documents match the LC. The
following must be ensured:
1. The Exporter has the correct number of
copies and originals
Also ensure that they contain the information called for,
that the title of all the documents is correct and they are issued
by the party specified in the LC. The document name must match
exactly what the LC calls for.
2. They are consistent with each other
The shipping marks, quantities/weights, transport details,
references and general descriptions must all? Be consistent to
ensure? That they clearly relate to the same shipment.
3. The description of the goods is
Goods may be described in general terms in all documents
except the invoice, where the exact LC description must be
4. The documents are authenticated
Import regulations in some countries require the documents to be
signed manually and any alterations or additions witnessed.
Submission of documents to the Advising Bank
Once prepared, the shipping documents need to be presented to
the Advising Bank without delay. Be aware of the following:
The following documents must all be in order
Ensure these include the right type of transport, places and ports,
have the correct consignor and consignee, date of shipment and
'freight paid' notation.
Ensure that this is of the correct type, amount and currency as
stipulated in the LC. The date must be no later than the date of
issue of the transport document, unless the insurance document
clearly states that cover takes effect from the date of
shipment/receipt of cargo, ie. warehouse-to-warehouse.
The Importer and Exporter's names and details, the description of
the goods and the clauses or statements must all appear exactly as
they are in the LC. The value must not be more than the LC permits,
though you can under certain conditions sometimes under-draw by up
to 5%. A 5% variation is sometimes permitted, alternatively the LC
may permit a specific variation such as an 'about' amount having a
Bills of Exchange
Ensure that the date, amount and currency are all correct, that the
words and figures agree and that it is drawn on the correct party.
Also check the endorsement, clause, and Letter of Credit reference
number and ensure the signature identifies the signatory.
Covering note/letter to Advising bank
The note/letter must include the Exporter's contact details.
Include a request that the bank notifies any discrepancies by fax or
telephone rather than mail. Indicate how to be paid and include
account details. Provide details if the Exporter has a forward
Any other documents
Ensure all other documents are from the correct issuer, have the
correct wording and content, clearly relate to the goods invoiced
and are all signed and endorsed as necessary.
Also ensure that all communications are correctly set out, addressed
and dated and that no documents are enclosed that are not required.