Negotiation of Export Documents under Letters of Credit

Negotiation of Export Documents under Letters of Credit

Negotiation of Export Documents under Letters of CreditWhen the export bill is drawn under letter of credit arrangement, it is the duty of negotiating bank to scrutinize carefully whether all the documents required under L/C are presented and they are drawn in conformity to the terms of letter of credit. If the documents are in order and comply with the total terms of letter of credit only, the negotiating bank makes the payment to the exporter. Even if there is slightest deviation from the terms of letter of credit or there is even minor discrepancy in the documents, the negotiating bank does not make the payment to the exporter. There is no distinction between major and minor discrepancy. If the documents are not in order, even after the negotiating bank makes payment to the exporter, opening bank does not make reimbursement to the negotiating bank.


What happens, if HAWB number marks wrongly

What happens, once Bill of Entry for Imports files?

What is ‘Combined Bill of Lading’

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

What is ‘Late BL release charges’

What is ATA carnet and how ATA carnet works?

What is Bank Guarantee to customs in Import

What is Bond execution with customs in imports and exports

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Application for registration under GST Act to obtain GSTIN

GST registration and returns filing procedures for PSUs and Government entities

Re-registration of GST, Goods and Service Tax.

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers