If the exporter receives a letter of credit (L/C) directly from an issuing bank in the importing country, he/she must be very careful if the integrity of the issuing bank is unknown and the authenticity of the credit is in question.
Errors in the terms and conditions of a letter of credit may occur as a result of the applicant's error in preparing the L/C application and/or the issuing bank's error in preparing the L/C. The exporter must check the L/C immediately and thoroughly upon receipt from the bank, to ensure that the terms and conditions stipulated in the L/C are correct and conform to the sales contract, and that he/she can comply exactly to the L/C requirements. Otherwise, the exporter must immediately ask the importer to amend the L/C .If any terms and conditions of the letter of credit are not complied with, no matter how small, a discrepancy is said to occur and it can delay or prevent the payment.
The exporter should check the details of letter of credit, including the following:
1 The names and addresses are complete and spelled correctly.
2 The L/C is irrevocable and confirmed by the advising bank, conforming to sales contract.
3 The amount is sufficient to cover the consignment.
4 The description of goods is correct.
5 The quantity is correct.
6 The unit price of goods, if stated in the L/C, conforms to the contract price.
7 The latest date for shipment or the shipping date is sufficient to dispatch the consignment.
8 The latest date for negotiation or the expiry date is sufficient to present the documents and draft(s) to the bank.
9 The port (or point) of shipment and the port (or point) of destination are correct.
10 The partial shipment/drawing is permitted or prohibited.
11 The transshipment is permitted or prohibited.
12 The L/C is transferable or non-transferable.
13 The type of risk and the amount of insurance coverage, if required.
14 The documents required are obtainable.
15 The following words, or similar, are present in the L/C:

"Unless otherwise expressly stated, this Credit is subject to the Uniform Customs and Practice for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500."

Quoting from [Moolan99]:


Replying to [sktyagi]: Hello my friend, I just saw your informative posting. I rated as worth reading and added to my "watch list". Thank you.


Moolan

Hi friends,

all the matters discussed are available in the articles under "payment & security" with so many illustraions and examples:

 The financial institutions also have the responsibility  ( applicants as well as benificiery's): So we shouldnot worry too much about mistakes etc: We have to submit the documents and papers as stipulated in the LC. And we have to satisfy the conditions: this is the most important on our part:

Replying to [curdrice]: yes, i totally agree.
and i will definitely check out the payment and security section !! thanks

Replying to [sktyagi]:useful discussion

Replying to [sktyagi]:thank u i learn a lot

Replying to [sktyagi]:you are

Replying to [YiWuChinaExporter]: Thanks YiWu. I am happy that I have been of any use for you.

Replying to [Ganapathie]: Thanks Ganapathie

Replying to [keke ]: Thanks Keke

Hi zealotwan

I have NCam actng as agent for a iron ore sale.

I have Agent fee Agreement, NCND signed and are moving to consider a LOI from a buer.

Can you LIST the causes of action/process and documentation I should ensure I have?

Many thanks.

Replying to [malleebyma]:
Please do not put your mail and web address on this forum it is against the rules.