ITA 403-0101-Week 8-Docs.Preparation and Presentation.

ITA 403-0101-Week 8-Docs.Preparation and Presentation. -...

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Week- 7 (Chapter- 3) Export Documentation Preparation and Presentation. Documents Preparation. Once the exporter is satisfied with the terms and conditions of the credit (often after one or more amendments to the L/C), the next step is shipping the goods, preparation of the required documents and presentation of documents to the nominated bank. Considerable amount of planning and preparation is required on the part of the beneficiary (exporter) by way of co-ordination with freight forwarders, inspection companies, fumigation experts, government agencies etc. to make the shipping possible within the deadlines. Beneficiaries (Exporters) often entrust the documentation process or part of it to a freight forwarder. Depending on the Trade Terms (Incoterms) agreed, sometimes the documents are prepared by the freight forwarder selected by the buyer. Not all documents called for under the credit can be prepared by the exporter or the freight forwarder on exporter’s behalf. For example-Ocean Bill of Lading, Fumigation Certificate, Inspection Certificate, Health Certificates etc. are to be obtained from shipping lines, fumigation company, inspection company and health authorities etc. respectively. While freight forwarders claim expertise in documents preparation and presentation, they will not accept the cost of their failure to present the required documents within the required timeframes to the bank. The burden is always on the exporter and therefore regular exporters should train their staff to manage the export documentation and payment process. Exporters need to review each and every document called for under the credit to assure that they comply with the terms and conditions of the credit. The earlier a problem is caught and fixed, the better. Presentation. By now the exporter should know to which bank he should present the documents to, to get paid by whatever payment method as specified in the credit. FIELD “41D” of the credit gives the name of the nominated bank or if it is a freely negotiable credit, the exporter is free to take the documents to any bank willing to review and negotiate the documents. Exporters should exercise caution to make the presentation to the right person and
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ITA 403-0101-Week 8-Docs.Preparation and Presentation. -...

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