In this article we will discuss about, what is Negotiable Bill of Lading, Why endorsement is required, who should endorse and what are the endorsements required.
Purpose of Letter of credit (“LC”) is to give payment security to the beneficiary subject to documents presented under the LC complying with the requirements of the LC.
To check if documents are compliant, banks examine the required documents based on:
- The terms and conditions of the documentary credit.
- The applicable rules of UCP 600.
- The applicable content of ISBP 745.
Directorate General of Foreign Trade (DGFT) on March 12, 2015 reduced mandatory documents for Import and Export of goods to below 3 documents:
Trigger for this topic is a question that a reader asked:
“Can Exporter retain dollar in EEFC A/c for buyers credit repayment ?”
Below article gives basic details about EEFC account and revert to above query.
Importer has to submit a list of documents for making import payments. One such documents was A1 Form except for import payment less than $ 5000. RBI with its circular dated 12 February 2015, has removed this requirement.