Important and Critical Issues of Complying Presentation Based Upon Letter of Credit (L/C) Payment

Abstract

In this study, there is suggested proposals and determined about such a way must be followed in complying presentation in accordance with letter of credit payment and the faults of exporting companies specific to Turkey in this issue. Beneficiary needs to provide complying presentation after preparing the papers appropriately at first letter of credit terms, rules of UCP 600 and ISBP 745 for applicant bank and if available confirming bank’s pay obligation could continue against beneficiary company in letter of credit payment. Since provided complying presentation ability requires a certain level of experience and expertness; it is observed about exporter companies in Turkey localized, receive export prices late and pay extra charges/commissions, could not benefit from pay obligation guarantee of applicant bank and if available confirming bank because of their generally discrepant document, facing contradiction in terms on this complying document preparing. Moreover, a various letter of credit condition which are disadvantages of exporters and could be caused financial losses are discussed and includes advices in this study. Based upon the findings, there is determined about most important reason of the companies could not provide complying presentation is preparing certain documents within letter of credit conditions incorrect, and it is shown how to prepare the subjected documents appropriately to letter of credit payment as considering their main and critical properties.