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Presentation of Documents to Bank
Let’s learn more about Presentation of Documents to Bank. The exporter presents the following documents to the bank for negotiation/ collection
- Commercial invoice (Requisite number of copies)
- Certificate of Origin (two copies)
- Customs Invoice (Requisite number of copies)
- GR Form (Duplicate)
- Packing List (requisite number of copies)
- Full set of Clean-on-Board Bill of Lading (Negotiable plus Non- negotiable copies as required)
- Additional copies of the Commercial Invoice for Certification by the Bank
- Original Letter of Credit/Export Contract
- Bank Certificate in the prescribed form in duplicate
- Marine Insurance Policy/Certificate
- Bill of Exchange
After shipment of goods, exporter has to negotiate the documents through a bank within a period of 21 days from the date of shipment. Submission of relevant documents to the bank and the process of obtaining payment is called “Negotiation of Documents”. When the documents are presented under Letter of Credit, Negotiating Rank makes the payment immediately. In the absence of letter of credit, exporter’s bank may purchase the documents and provide funds immediately or send for collection and on realization gives credit for the amount collected, after deducting commission.
Letter of Credit L/c also known as Documentary Credit is a widely used term to make payment secure in domestic and international trade. The document is issued by a financial organization at the buyer request. Buyer also provide the necessary instructions in preparing the document.
