Are there clauses in a documentary credit restricting the exporters assurance that he will receive payment?
It is important to beware of so-called “soft clauses” or “stop clauses”. The exporter has little influence here and no real means of verifying if these terms of the documentary credit have been complied with. There may, for instance, be a provision for the documents to be issued or countersigned by the buyer. Should the buyer choose to delay or even prevent the issuance of the documents, the exporter has no means of verifying correct submission.
- What instructions must the exporter give the buyer to ensure he obtains a documentary credit confirmed by UBS and hence the assurance that payment will be forthcoming?
- Are there clauses in a documentary credit restricting the exporters assurance that he will receive payment?
- When a documentary credit has been confirmed by UBS, can the exporter rely on receiving payment?