If you have a just send me a letter of credit approach, you may receive a letter of credit containing terms and conditions with which you cannot comply. Make sure your firm has a policy for negotiating letter of credit terms. The policy should aim to offer or accept during negotiation only the terms that suit your business capabilities and needs. Negotiate feasible deadlines and flexible terms wherever possible. For example, negotiate any port instead of a specific port for shipment purposes.
Flexibility makes compliance easier.
Once your company has established a policy, entrust the task of negotiating letter of credit terms to the export marketing department. Good negotiation by the export marketing department will make compliance by the export administration department convenient and timely. Examine the letter of credit. Carefully examine the letter of credit received for conformity to the sales contract and clarity. Set a policy for amending or rejecting a letter of credit.