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COMMON ERRORS IN DOCUMENTATION – GUIDELINES TO EXPORTERS
In this article, let us discuss about common errors in export documentation.
Documentation plays an important role in Exports and Imports especially when consignments are under Letter of Credit basis. Improper documentation in exports and imports causes loss in business in all means and inconvenience with waste of time on rectification.
Let us discuss here some of the major common errors in Documentation under exports.
COMMON ERRORS IN DOCUMENTATION – GUIDELINES TO EXPORTERS
If a consignment is on LC basis, the banks observe the following general discrepancies in documents, which normally occur, when presented for negotiation / payment.
First, documents are presented to the negotiating bank that scrutinizes carefully and then makes the payment to the exporter. Later, when the negotiating bank submits the documents to the paying bank, the paying bank, again, makes a careful scrutiny and on finding the documents in order, makes reimbursement to the negotiating bank.
The following are the common errors in documents in exports:
(i) The Letter of credit has expired. You can read a separate article of mine in this website.
(ii) The Bill of Lading is claused (unclean or dirty) with notes – Please ready my article in details about Claused/Dirty/Unclean Bill of lading.
(iii) The goods were shipped on dock when it was not permitted, as Letter of credit has insured clean on board Bill of Lading.
(iv) Insurance cover was inadequate and expressed in a currency other than that required in the letter of credit.
(v) The description of goods or even the spelling is different from that in the letter of credit.
(vi) The total amount in the invoice and bill of exchange differed.
(vii) The drawing was for value, in excess of the amount of the letter of credit.
(viii) The Bill of Lading did not evidence whether the freight as paid or not.
(ix) The Bill of Exchange was drawn on wrong party.
(x) The Bill of Lading, Insurance document and Bill of Exchange were not endorsed correctly.
(xi) Transshipment/partial shipment made when prohibited under the L/C.
(xii) The facsimile signature were used when not allowed.
(xiii) The Bill of Lading is stale.
I hope I could explain some of the major errors that could happen in documentation under export/import. You can also add up more information below about common errors in documentation.
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