FTT requirements for export Letters of Credit
To enable us to dispatch your goods as quickly and economically as possible, the conditions set out below must be used when opening a confirmed doumentary L/C.
|1.||Prior to Opening L/C||It is strongly recommended that a draft copy is sent to FTT prior to opening L/C to ensure that the details are correct and that we can comply.
If this is not adhered to costs of amendments are for the openers account and not FTT and any extra cost incurred to FTT will be billed to customer.
|If terms of L/C are agreed prior to opening this will avoid any unnecessary amendments to the L/C and any extra bank costs incurred for amendments.|
|2.||Type of Credit||Confirmed irrevocable documentary Letter of Credit drawn on AA rated bank. Conditions must comply with UCP600 rules.
In the current worldwide bank crisis the need for confirmation is vital.
|This will reduce the need to apply for amendments and keep bank charges to a minimum and also helps FTT to present our documents quickly.|
|3.||Shipment Date||To be agreed with FTT prior to opening L/C||To avoid need for amendments.|
|4.||Expiry Date||Allow 21 days from the shipment date for presentation and negotiation.||This allows FTT to receive documents from third parties (i.e freight agents or Chamber of Commerce) and present to the bank in time.|
|5.||Payment Terms||100% at sight upon presentation of documents to bank|
|6.||Documents||2 copies commercial invoice
2 copies packing list
2 copies insurance certificate (if necessary)
1 original airway bill or
3/3 original bills of lading or
1 original CMR Sight drafts
2 copies certificate of origin (if necessary).
|Keep documents simple – these are all the documents that the Banks require for a documentary Letter of Credit. It also cuts down the possibility of discrepancies and extra costs when too many unnecessary documents are called for. The more documents requested creates chance of errors occurring.|
|7.||L/C Charges||All charges to openers and any subsequent amendment charges.||Our bank will reject any L/C that does not conform to this.|
-The costs of any amendments required, caused by failure to adhere strictly to these guidelines, will not be accepted by FTT.
-If additional documents are required to support the documentary letter of credit, these will be charged for.
-FOB charges from customer’s own forwarders will be paid by customer not FTT.