Trade and export finance expert Domenico Del Sorbo’s take on how to prepare the “draft” in accordance with the letter of credit conditions and provisions.
UCP 600 article 2 states that a “Complying Presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice.”
Though an important instrument in international trade, letters of credit are complex, and their definition can cause confusion….
When searching for a definition of documentary credit, the Uniform Customs and Practice for Documentary Credits (UCP 600) is the best place to start.
Since documentary collection is not a risk mitigation tool, it is appropriate to use this form of payment with caution to advise operators to follow a scientific approach in the management of this payment instrument.
TFG heard from Trade & Export Finance Specialist, Domenico Del Sorbo on practical aspects of payment instructions in international trade.