Is it possible to amend or extend an LC? What about after it has expired?
Yes this is possible, but all amendments have to be approved by the applicant and issuing bank. When an LC has expired it means that the issuing bank has no more liability towards the exporter, and if the beneficiary ships goods he does it at his own risk and peril. If the exporter requires the LC to be extended or amended, he must contact the applicant which in turn must apply for an amendment at the bank (issuing bank).
Do we need to pay if the goods are not in accordance with order specifications?
Yes you do. The banks deal with documents not goods (UCP 600 article 5) and will not physically confirm the content of a shipment.
Must I extend the Letter of Credit when the supplier is late with his deliveries?
No, however many exporters will be reluctant to ship the goods under an expired LC and will require the buyer to request an extension.
What is a sight Letter of Credit?
A letter of credit that is payable once it is presented along with the necessary and correct documents.
What is a transferable Letter of Credit?
It is a method which means that a first beneficiary (often a middleman) transfers his rights to a second beneficiary (normally the producer or ultimate seller). According ICC rules, article 38(b), an LC can only be transferred if the issuing bank expressly designates it as transferable. Only the nominated bank or a bank authorized by the issuing bank may transfer the DC.
What kind of documents should we require under the Letter of Credit?
In order to receive payment, the exporter must present the documents stipulated in the letter of credit. There are no requirements for specific documents to be presented in an LC. The list and form is open to negotiation by the seller and the buyer, and sometimes the LC contains requirements to present documents issued by a neutral third party evidencing, for example, the quality of the goods shipped or their place of origin. As a proof that goods have been shipped, the LC often requires some kind of transport document to be presented, for example a Bill of Lading or Air way bill.
The boat and the goods are here, but where are the documents?
Contact the seller and ask for the courier tracking number which enables you to track the documents. When the documents arrive at Nordea we will advise you.
Where should I send the Import Letter of credit application?
Send the application to your local Nordea Branch.
I have been informed that the goods have arrived by plane and are consigned to Nordea. Is it possible to have them released?
The answer differs between collection and Letter of credit but we will contact you when the goods arrive to the airport and after we've been notified by the carrier.
The street address in the Letter of Credit doesn't comply with the one on my LC application.
LC: If you want the goods we will release them which means that you are also obligated to pay when the documents arrive, even if they are determined to be discrepant.
Coll: Yes it is possible, but it has to be approved by your local branch. Please contact them.
Since we communicate though SWIFT, it is most important that the address in SWIFT is the correct one.