11.6.3 Examining the Letter of Credit and Requirin...
Before you sign the sales contract with the importer,remember to examine not only the importer’s reputation,but also that of the importer’s(issuing)bank before agreeing to rely upon that bank for payment under a letter of credit.Once the credit is received,you must examine all terms of the credit with care to see whether there are errors,discrepancies with the contract or any terms that you are unable to comply with,particularly those that require a document which is dependent on the signature or approval of the importer,because,by refusing to sign such documents,the importer could refuse to pay.If you find problems listed above,notify the importer in no time and ask him/her to make an amendment to the credit.To reduce the possibility of amendment and the fees incurred,you’d better add a term in the contract to the effect that “all terms of the L/C must be confirmed by the exporter before the importer opens it”.