Appendix 3
Suggested checklist for
beneficiaries when
preparing documents
for presentation under
a documentary credit
1 Is credit still valid?
2 Is the available balance sufficient to cover presentation?
3 Is the draft to be drawn on issuing or confirming bank?
4 Is the draft drawn correctly and for the tenor stipulated in the credit?
5 Is the invoice issued by you and is your name shown exactly as stated
in the credit?
6 Does the invoice agree with supporting documents as regards unit price,
description of goods, weight and term of shipment?
7 Where documents include shipping marks, are they exactly as shown on
the document of despatch?
8 Has the invoice or certificate of origin been certified and/or legalized if
required under the credit terms?
9 Are miscellaneous documents, such as packing list, inspection certifi-
cate, weight note, etc., issued separately and not combined with other
10 Are all documents issued by the parties stipulated in the credit?
11 Is the insurance document issued for the correct percentage of cover,
usually 10% above CIF value and is it in the same currency as the
Finance of International Trade
12 Is the insurance document dated no later than the transport
13 Does it show the name of the agent responsible for handling claims and
is it properly endorsed?
14 Is a full set of bills of lading being presented? If not, does the credit
allow an original to go direct to consignee?
15 Are the bills of lading stamped ‘freight paid’ or ‘freight payable at
destination’ as stipulated in the credit? Are they properly issued and
16 Do the bills of lading show a ‘notify’ party?
17 If the bill of lading is a charterparty bill, does the credit allow it?

Get Finance of International Trade now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.