•You will hear a bank expert talking about some of the common mistakes that are made when people complete letters of credit. •As

Now you’d be surprising at the kinds of mistakes people  make  when  using  letter  of  credit documentation.  These errors can often lead to rejection on  the  very first presentation.  The research department of our bank found that 25% of the documents were rejected.  Now there were different reasons. The main ones were things like the fact that the letter of credit had expired, or the documents were presented after the period stated by the letter of credit. Or, of course, the shipment was late.
     If you think about it, it is quite amazing really. But I can’t stress enough the need for consistency between  different  documents.   I  mean,   for instance, our bank study found out that spelling inconsistencies or mistakes are part of the problem. That is the description or spelling of goods on invoices was different from that in the letter of credit.  Or,  the weights were different on the export documents.  Then the amounts of money value shown on the invoice and the bill of exchange differed too. Even the marks and numbers were found, to be different. Then another thing we found was that the amount of money mentioned on the letter of credit was smaller than the value of the order.  Or,  the shipment was short.  Then you might even find that some documents were missing which were called for in the documentary letter of credit. We even had cases where signatures had not been witnessed as. required for certain documents presented. Or else facsimile signatures were used where they’re just not allowed. And this is by no means the end of the list, which goes on and on~ but I won’t bore you any more. All in all almost 50% of the documents presented along with the letters of credit were rejected on  their  first presentation and this meant sometimes long delays in payment with all the complications that can involve. And I don’t need to tell you.