Negotiation procedures and formalities of export bills
Today, I will be discussing the procedures for the negotiation of export documents, and I will provide you with ten bulletins to summarize the information.
Negotiation of export bills is the process of submitting required documents to the bank for sending to the overseas buyer through LC opening bank.
Customs House Agents appointed by you complete customs formalities on behalf of you and delivers necessary export shipping documents once your goods moved out of your factory.
Once customs formalities completed and obtained 'let export order' shipping bill, you hand over the cargo to the shipping line to carry your goods to the final destination at the buyer's place.
The Bill of Lading is issued once after the cargo is handed over to the shipping line.
When negotiating documents, you should submit all required documents as per letter of credit terms and conditions to the bank to send to your overseas buyer through LC opening bank.
Documentation is a crucial part of shipment under Letter of Credit, as the opening bank debits you against any discrepancy found on documents.
It is essential to carefully review and mark each point on the Letter of Credit to ensure that all documents meet the LC requirements, including international inspection requirements, clean on board bill of lading, factory inspection certificate, certificate of origin, legalized documents, consulate attestation, SGS, BVQI inspection, Phyto sanitary certificate, chemical analysis certificate, shipped on board certificate, freight certificate, etc.
List out the documents required to submit while negotiating bills and go through each document at least twice to ensure they meet the LC terms.
Make sure that all documents are there as per LC terms and that no discrepancies are found in each of the documents before submitting them to the bank to send to the overseas buyer.
Once the bank receives the export documents, they will arrange to negotiate the bill as per Letter of credit terms and conditions after proper verification of each and every clause. If your export order is in US Dollar currency, you can either convert the amount into your currency or open a dollar account and transfer the amount accordingly.
Thank you for listening.