In our previous article, we tried to describe the credit in a simple way and stated that there are 3 important concepts within the definition we have uncovered. These are;
1- Correct Documents
2- Condition
3- Commitment
It was concepts.
In our last article, we focused on the concepts of terms and commitments in the definition of credit, and in this article, we will focus on the concept of "Right Documents".
What is the correctness of the documents, and in what cases is it considered correct? The situation that makes credit difficult and is constantly met with a glitch in practice is precisely the answer to these questions.
The following are the issues that may arise regarding the documents requested to be submitted in the letter of credit;
– Name of the document
How many original copies should there be
– Who will prepare the document
– Content of the document, what information will be
– Information and/or details that should not be in the document (if any)
– If confirmation/approval is requested on the document, how, by whom or by which organization this affirmation/approval is to be made
– What date the document will be dated or what date range it should be prepared in
– Some other details similar to this information
There are three sources where we can find the answer to these questions;
1) If the credit text specifies how and how the document will be edited, the first place we will look is the credit text itself. Documents must be prepared in the form and details set out here.
2) If the credit text does not specify how the requested document should be, even if it is not specified or specified by whom, the second source to be looked at is the publication of the International Chamber of Commerce (ICC – UCP 600, 2007 Revision). We can also say that this publication is the basic book of credit.
3) If we cannot find some details of the preparation of the document in the UCP 600 publication and/or if we need comment on the definition set out here, the publication of the International Chamber of Commerce (ICC) ISBP 745 will be the third source of application, we may be able to find the information we need in this last source. The first two articles of this publication are as follows;
a) This publication will be read together with UCP 600, not alone.
b) The practices described in this publication highlight how UCP 600's clauses will be interpreted and applied unless a applicable clause of UCP 600 is explicitly changed or excluded by credit terms or an amendment to the letter of credit.

Out of these resources, what will give us an idea, what will guide us is the experiences that we have experienced ourselves and around us.

As can be seen from the issues mentioned above, the multitude and diversity of details in the proper preparation of documents require commenting on the subject. Comments can vary from organization to organization, from person to person. This makes it difficult to create a standard concept of "Right Document" in letters of credit. We can say that this is the most difficult aspect of credit that is encountered in practice. From time to time, banks are able to make 2 different comments on the same detail on the same day, and are able to correctly evaluate one of the two documents submitted for two letters of credit bearing the same items. The way to deal with this challenge is to gain experience by getting a good understanding and practice of credit reading in our blood, articles of UCP 600 and ISBP 745 publications. In this way, we can respond to the banks' erroneous comments and get the correct comments to come out.

Hüseyin TEKGÜÇ
www.inovakademi.com

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