Latest Status in Libyan letters of credit (24 December 2018)

According to recent reports from Libya Central Bank of Libya (CBL) a while ago, it has now begun to allow the opening of credit for many sectors. As previously known, only medicine allowed the opening of an letter of credit for the import of goods, such as basic food.

In the coming days, orders from Libya and, accordingly, the credits to be opened to exporters in Turkey are expected to increase.

In this article, we will try to explain both what to pay attention to in an letter of credit, and what to pay attention to in the letters of credit opened in the Libyan special.

First of all, "I Want to Work with Letter of Credit Credit"The issue that exporters should pay attention to; Turkey Opened Libyan letters of credit There are not many banks that add confirmation to it (these days). The exporter needs to meet with the firm's bank and learn whether its bank will "add confirmation". Also, for Libya Confirmation Costs It can be above what is expected, so it is recommended to ask the bank about the cost of confirmation as well. If we make a reminder here, as it is known, in the acknowledgment "Confirmation"The concept; With the right paperwork presented in accordance with the credit terms, the payment is guaranteed by the issuing bank.

We can briefly summarize the negative situations common in Libyan letters of credit as follows;

1. Chamber of Commerce Membership registration (writing) is requested. In this article, the Chamber of Commerce is asked to have terms and phrases that are not possible to write. Chambers of Commerce They do not (although they vary from room to room) write outside the standard forms that report membership registration, and do not make any extra additions to these forms (such as the credit number, bank name).
2. Export Declaration It is seen that a document is requested by means of the export Customs Declaration with the name. It will not be realistic to present the Customs Declaration to the bank by credit. When providing this document, our recommendation is to consider Article 14-f of the UCP 600 brochure.
3. Radiation Document If desired, the organization that will organize TAEK It would be correct to discuss with them and to investigate whether the document they will submit will be in accordance with the credit terms. If the appropriate document cannot be provided, the customer must be interviewed for the cancellation of this article.
4. The Consignment It is necessary to discuss with the shipping company the terms contained in the article on the subject and to ask if they can give "Bill of Lading" in accordance with these conditions. It is useful to pay attention to who will edit the consignment and/or (if any) certain documents requested from the agency, to agree on the party who will issue the documents. If there is no additional expense on the bill (such as ADDITIONAL COST NOT ACCEPTABLE) or in the letter of credit UCP 600 If there is a requirement that invalidates Article 26-c of the numbered brochure, this issue must be discussed with the agency. In practice, it seems that most agencies do not want to arrange such a consignment.
5. Certificate of Surveillance in Credit (Inspection Certificate) if requested;
   – It is necessary to meet with the surveillance firm and ask whether a certificate will be issued in accordance with the requirements that must be written in the requested document.
   – Is the surveillance firm specified in the credit located in Turkey? If not, a change must be made to meet with the customer and work with a known surveillance firm located in Turkey.
6. In credit for food products Health Certificate If desired, attention to detail is required. It is not possible to print the desired phrases and words on the certificate on the official health certificate format of the Provincial Directorate of Agriculture. It is recommended that this issue be examined, a solution is sought, and, if necessary, the 14-f clause of the UCP 600 brochure is taken into account.
7. If there is a requirement in the credit that the documents be in English, then in addition to this article, to avoid a surprise claim of nonconformity, "Except pre-prescribed words"I would like to point out that the sentence is useful in adding.
8. We strongly recommend that documents that are not clearly understood in the credit as what the requested document is, what it should contain, be discussed with the bank and clarified.

The possible glitch issues listed above are some of the ones that have recently been found in Libyan letters of credit. Apart from these, glitches can also be encountered.

As a result, it is useful to provide the right document by credit and get expert opinion on the subject to collect smoothly.

We wish you days of error-free, successful, efficient and export-filled.

Hüseyin TEKGÜÇ
24.12.2018

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