Almost half of letters of credit received in the UK are unworkable according to recent research – that is the buyer requests documents which the seller is unable to produce.
Recently, for example, a Turkish buyer requested an ATR movement certificate from a UK seller for goods despatched direct from Peru to Izmir in Turkey. This was not possible as the ATR movement certificate can only be issued for goods which meet with the rules or origin that goods must be manufactured and produced within the EC or in free circulation.
Alan Bracken of ABTS Training Services stated at a recent seminar on letters of credit: “You get the letter of credit you deserve, if you don’t ask you don’t get.”
“In order to get a workable letter of credit you must give the seller details of the letter of credit you require.”
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