ISSUING NEGOTIABLE DOCCUMENTS IN ACCORDANCE WITH PAYMENT METHOD OFLETTER OF CREDIT

Abstract

Two documents as the bill of landing and the policy are in use in terms of presentation of the commodity property in payment method of letter of credits. To prepare both two documents correctly is extremely important to dispose of the possible risks based on the property and continuity of the bank guarantee for the payment by letter of credit. There are three vital components in which ensure the exporter companies to prepare the bill of landing and policies agreeable to the letter of credit. These three crucial components as follows; terms and conditions of the letter of credit, UCP 600 and ISPB 745. Since to be able to accurately submit under the three sources mentioned above needs at a certain level of experience and knowledge, it is observed that the localized companies in Turkey who actualize foreign business and prefer to pay with letter of credit experience contradiction in terms on preparing applicable documents, cannot benefit from the guarantee of the payment obligation of the issuing bank and if any, the confirming bank by submitting discrepant document. In addition to this, these companies receive the export proceeds late and pay extra charges/commission. This paper makes suggestions and accounts for the critical and substantial ways of preparing only bill of lading due to wide scope of the subject its large to the payment with letter of credit by considering the common mistakes in practice