L/C Checking

Customer Management Letter of Credit (L/C) Checking is a critical step in foreign trade practice where, after the exporter (beneficiary) receives an L/C issued by the issuing bank at the request of the importer (applicant), business personnel or documentation specialists review and verify the L/C terms item by item. Its core purpose is to ensure that the L/C terms are consistent with the contract and that the exporter can meet all requirements, thereby avoiding refusal of payment by the issuing bank due to discrepancies in documents. It typically occurs after receiving the original or copy of the L/C and before arranging production or shipment. Key points to check include: the issuing bank's creditworthiness, L/C type (irrevocable/transferable, etc.), amount and currency, shipment date and expiry date, presentation period, document requirements (such as bill of lading, invoice, packing list, certificate of origin, etc.), soft clauses (such as requiring a signature from a buyer-designated representative), and cost bearing. When combined with 'customer management,' it emphasizes targeted review based on the specific customer's historical transaction practices and common L/C risk points. The difference from 'L/C amendment' is that checking identifies problems while amendment solves them; the difference from 'document preparation and settlement' is that checking occurs before shipment while document preparation occurs after shipment.