31 August 2010
The letter of credit should have an expiration date that gives sufficient time to the seller to get all the tasks specified and the documents required in the LC. If the letter of credit expires, the seller is left with no protection. Most LC s fail because Sellers/Exporters/Beneficiaries were unable to perform within the specified time frame in the LC. Three dates are of importance in an LC: a) The date by when shipment should have occurred. The date on the Bill of Lading. b) The date by when documents have to be presented to the Bank c) The expiry date of the LC itself.
A good source to give you an idea of the timelines would be your freight forwarding agent. As a seller check with your freight forwarding agent to see if you would be in a position to comply.
01 September 2010
Sir, suppose seller take time to complete all tasks with in 30 days and i have to apply for L/c today i.e. 01-09-2010 which date should be mentioned please help me.
because in form there is another column i.e. 'Document presentation period:______ days after shipment date but within the validity of the credit.
CAclubindia
