logo grupo

Phases of documentary credit

Once the importer and exporter have agreed all the terms and conditions of the documentary credit, the next step is for the importer to go to their bank and request the issuance of the documentary credit. Bearing this in mind, the importer is known as the ‘ordering party’ and their bank the ‘ordering bank’.

The issuing bank will issue the Swift message with the terms and conditions of the documentary credit to the supplier’s bank, which will send a copy to its customer.

At this point, the supplier can begin to prepare the documentation and the goods to be sent. Once the goods have been loaded, the documents will be sent to their bank and, once these have been checked to make sure they are correct, they will be sent to the issuer’s bank.

If the documents are correct, the ordering party (importer) is obliged to honour the payment.

If the documents are presented with discrepancies, the payment collection guarantee becomes null and void, and collection will depend on the importer’s disposition to make the payment. If there are discrepancies and the importer decides not to honour the payment, the documentation must be returned to the exporter’s bank and the goods may not be collected by the importer.

Once the documents have been collected by the importer, either because the documentation is all correct or because, if even it contains discrepancies, they have been accepted, payment will be made on the corresponding date according to the terms and conditions of the documentary credit.

With the transport documents, the importer may collect the goods from the port or airport. If transportation is made by truck or lorry, goods may be delivered directly to the importer’s premises.

coce cd fasescd
« Anterior Siguiente »