An opening gelaborately introduces the documentary credit, its character, and role in payment and financing of the international trade. The documentary credit is compared with other payment methods from the standpoint of its advantages and disadvantages, both from the seller’s and the buyer’s point of view. The DC is explained in a most practical way, differentiating this publication from others in the field. The DC instrument is explained “step by step”, i.e. each aspect of the credit treated separately, from top to bottom of the credit instrument. UCP 600 rules are herewith clarified with comprehensive attention placed on various options and situations, linked directly to specific documentary credit terms and conditions.
A practical section follows which describes the documentary credit cycle in detail: from the preliminary stages of contracting through negotiation of the contract terms and conditions; final contract conclusion; issuance of the documentary credit; preparation of the documents required by the credit; to the presentation and drawing. Liabilities and responsibilities of the involved parties are explained as well as the optimal operational procedures, identification of common problems and issues, and the safeguards for dealing with them in daily practice.
As the documentary credit is not only a payment instrument but can also serve as a financing tool, a third section of the book examines the various forms of financing based on documentary credits.
The book’s fourth section thoroughly addresses all facets of examination of documents presented under documentary credits.