International payment 4 th Edition World Trade Press
Common Problems with Documentary
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- Điều hướng trang này:
- Common Problems with Documentary Credits
- Discrepancies with Documents
| Common Problems with Documentary
Credits • Despite the protections offered by a documentary credit, problems can and do arise. Most problems have to do with the ability of the seller to fulfill the obligations established by the buyer in the original documentary credit, or with discrepancies in the documents presented by the seller under the documentary credit. 9 Common Problems with Documentary Credits • Some of the common problems sellers have with documentary credits are: 1. Shipment schedule stipulated in the documentary credit cannot be met. 2. Stipulations concerning freight costs are deemed unacceptable. 3. Price is insufficient due to changes in exchange rates. 4. Quantity of product ordered is not the expected amount. 5. Description of product to be shipped is either insufficient or too detailed. 6. Documents stipulated in the documentary credit are difficult or impossible to obtain 10 Discrepancies with Documents • Perhaps the greatest problem associated with documentary credits is discrepancies with documents as they are prepared, presented, and reviewed by sellers, buyers, and the banks. All parties have the obligation to check the documentation to make certain it is in order and all parties are at risk for failing to do so properly. • The buyer can introduce problems to the process by specifying documents that are difficult or impossible to obtain. The seller can introduce problems by incorrectly preparing and presenting the document package to his bank. • Advising, confirming, and issuing banks can introduce problems by incorrectly reviewing (negotiating in bank language) the documents provided by the seller against the requirements of the documentary credit. 11 |