Letter of Credit: parties, types, critical dates

To access this video please

Sign up or Login

Additionally, for all newcomers we give 1 paid article for free.

View plans

Members have access to all videos, articles and online events! See membership plans (if you are a member, please log in)

Item added to cart

{{ courseItem.title }}
Item added to cart

{{ subscription.title }}

{{ title }}

{{ current_question.title }}

{{ successMessage }}

Download your certificate

{{ failMessage }}

{{ successMessage }}

Download your certificate

{{ failMessage }}

{{ failMessageRetry }}

{{ question.title }}

 Question anwered incorrectly. {{ question.explanation }}

At least one answer needs be selected to proceed.
View plans

Members have access to all videos, articles and online events! See membership plans (if you are a member, please log in)

Item added to cart

{{ courseItem.title }}
Item added to cart

{{ subscription.title }}
Overview

A Letter of Credit (LC) is a letter from a bank that guarantees that payment from the buyer (importer) to the seller (exporter) will be received on time and in the correct amount, provided certain stipulated criteria are met.

For whom the knowledge is relevant?

Exporters and importers in many countries around the world. LCs are used:

  • When the buyer and seller do not know each other or 
  • When they know each other but the seller wants an additional guarantee of payment. 

What will you learn?

You will learn answers to the following questions:

  • Who are the parties to a LC?
  • What types of LCs can you choose from?
  • What are the critical dates not to be missed?

Who shares the knowledge?

Vera Murphy, Managing Director of Bevan Murphy Customs Ltd, Ireland. Vera has decades of deep functional expertise in Global Forwarding and International Trade having held senior positions in two of the top ten global forwarders in the world.

Various problems can arise when using LCs, such as no payment for the supplied goods if a critical date is missed.

Vera Murphy

 

About

Letter of Credit Masterclass course. ~ 60% of LCs are rejected when they are first submitted for payment. It then takes a while for the necessary corrections to be made, and meanwhile the payment is not released to the seller. This course helps business structure their internal process to circumvent issues and control the process from the outset.

đź”— Bevan Murphy Customs Ltd. We are an International Trade training and consultancy company providing support to Global Forwarders, Customs Brokers, Industry and Government Agencies.
đź”— CustomsClear: Your Trade and Customs Knowledge go-to-place. We connect knowledge seekers with experts from the industry. And ensure that you stay on top of compliance-relevant news. Check out the latest articles, videos, courses and choose the best subscription plan to continuously grow your greatest asset - knowledge.
  • Publication date: March 07, 2023
  • Unlock duration: 2 months
  • Prepared by: Vera Murphy
  • Video duration: 07min 12sec
  • Languages: English
  • Level: Basic
  • Type: Video
  • Topic: trade topics
  • Tag: finance
  • Market: Global

Resources are available after purchase.

Comments ()

Similar content

Topic spotlight
icon
Interview: Why Politicians Lie About Trade... and What You Need to Know about It
24-11-2024

Dmitry Grozoubinski is a recognized authority on international trade policy and the author of “Why Politicians Lie About Trade”. The book is an accessible guide to how international trade really … works. It gives voters a peak behind the curtain, and equips them with the tools to ask the right questions of those in power promising miracles or warning of disasters. In an interview with CustomsClear’s Anna Jerzewska, Dmitry talks about his book and experience venturing into the world of customs.

Dmitry Grozoubinski

trade topics
Topic spotlight
icon
Interview: Why Politicians Lie About Trade... and What You Need to Know about It
24-11-2024

Dmitry Grozoubinski is a recognized authority on international trade policy and the author of “Why Politicians Lie About Trade”. The book is an accessible guide to how international trade really works. It gives voters a peak behind the curtain, and equips them with the tools to ask the right questions of those in power promising miracles or warning of disasters. In an interview with CustomsClear’s Anna Jerzewska, Dmitry talks about his book and experience venturing into the world of customs.

Dmitry Grozoubinski

trade topics
Perspective
icon
Top five challenges for European customs
28-08-2024

Someone recently asked me what are the current top challenges for customs in Europe. The article is an attempt to summarise the answer to this question. These are the five issues that, in my … opinion, are likely to impact the customs industry in the upcoming months and years. Some are more across-the-board and some are a bit more niche and local. The article comes from the author’s personal experience of working in the industry and across the private and public sectors and is therefore a personal perspective. By no means an exhaustive list.

Dr Anna Jerzewska

€
customs clearance, trade topics
Perspective
icon
Top five challenges for European customs
28-08-2024

Someone recently asked me what are the current top challenges for customs in Europe. The article is an attempt to summarise the answer to this question. These are the five issues that, in my opinion, are likely to impact the customs industry in the upcoming months and years. Some are more across-the-board and some are a bit more niche and local. The article comes from the author’s personal experience of working in the industry and across the private and public sectors and is therefore a personal perspective. By no means an exhaustive list.

Dr Anna Jerzewska

€
customs clearance, trade topics
Topic spotlight
icon
EU FTAs: Is EU fully utilising benefits?
07-04-2024

The EU has concluded more than 40 free trade agreements (FTAs) with around 80 countries, which supposedly bring significant benefits for trade with partner countries. But is this really the case, … i.e. is the EU fully utilising these benefits? This article attempts to assess the application of EU FTAs by analysing the flow of goods in and out of the main trading partners. The author looks at how import and export volumes and geography depend on the existence of preferential agreements.

Assoc Prof Dr Momchil Antov

€
origin, trade topics
Topic spotlight
icon
EU FTAs: Is EU fully utilising benefits?
07-04-2024

The EU has concluded more than 40 free trade agreements (FTAs) with around 80 countries, which supposedly bring significant benefits for trade with partner countries. But is this really the case, i.e. is the EU fully utilising these benefits? This article attempts to assess the application of EU FTAs by analysing the flow of goods in and out of the main trading partners. The author looks at how import and export volumes and geography depend on the existence of preferential agreements.

Assoc Prof Dr Momchil Antov

€
origin, trade topics
Panorama
icon
Transforming trade: how Dubai Customs is harnessing AI for enhanced trade facilitation and border control
19-10-2023

In a world where international trade is the lifeblood of economies, ensuring the smooth flow of goods across borders while maintaining rigorous controls is a challenging balancing act. Dubai, … one of the world’s busiest trade hubs, is meeting this challenge head-on by investing in advance technology and embracing the power of Artificial Intelligence (AI) to enhance trade facilitation and border control. These efforts are poised not only to bolster Dubai’s position as a global trade and tourist hub, but also to set new standards for Customs operations and services worldwide, which has reflected positively on Dubai Customs client happiness index reaching a score of 98% for smart and electronic services. Some of the projects developed using AI are presented below.

Ahmed Mahboob Musabih

trade topics
Panorama
icon
Transforming trade: how Dubai Customs is harnessing AI for enhanced trade facilitation and border control
19-10-2023

In a world where international trade is the lifeblood of economies, ensuring the smooth flow of goods across borders while maintaining rigorous controls is a challenging balancing act. Dubai, one of the world’s busiest trade hubs, is meeting this challenge head-on by investing in advance technology and embracing the power of Artificial Intelligence (AI) to enhance trade facilitation and border control. These efforts are poised not only to bolster Dubai’s position as a global trade and tourist hub, but also to set new standards for Customs operations and services worldwide, which has reflected positively on Dubai Customs client happiness index reaching a score of 98% for smart and electronic services. Some of the projects developed using AI are presented below.

Ahmed Mahboob Musabih

trade topics
Perspective
icon
The developments of mega-free trade agreements
01-10-2023

The development of free trade areas around the world, with most attention paid to the Asia-Pacific region and the Americas, is a major theme of the article. It also raises the question of the … role of the EU in this development. The article is based on the presentation at the European Customs Practitioners' Conference held in Vilnius, Lithuania on 25-26 May and online.

Prof. Dr. Hans-Michael Wolffgang

€
origin, trade topics
Perspective
icon
The developments of mega-free trade agreements
01-10-2023

The development of free trade areas around the world, with most attention paid to the Asia-Pacific region and the Americas, is a major theme of the article. It also raises the question of the role of the EU in this development. The article is based on the presentation at the European Customs Practitioners' Conference held in Vilnius, Lithuania on 25-26 May and online.

Prof. Dr. Hans-Michael Wolffgang

€
origin, trade topics
support@customsclear.net +370 664 26393 (EN, RU) 37066426393 (LT) +37064465553 (DE)
Login Sign up
Forgot password?

* Mandatory fields

By signing up you agree to the Terms of Use and Privacy Policy

Password reset

Check your e-mail, we sent you a link to reset your password.
Login with Google Login with LinkedIn
Contact us

Contact us

Thank you for report
Maximum file size 6mb
File is too large