Letter of Credit Checklist for Merchandisers

When an L/C arrives, the merchandiser's job is to verify that every term matches the price quotation / PO and that the factory can actually comply. Because banks pay against documents that meet the L/C exactly, a mismatch you miss now becomes a discrepancy that delays payment later. Run this 16-point check on every L/C.

The checklist

#	Check	Why it matters
1	Parties	Names/addresses of your company and the importer correct and complete?
2	Confirmed?	Is it confirmed? If not, any restriction preventing it?
3	Irrevocable?	Can terms be changed/cancelled without your consent? (they shouldn't)
4	Transferable?	Does it say "transferable" (if you need that)?
5	Goods description	Correct and complete, incl. trademark/model numbers?
6	Unit prices	Match what you quoted?
7	Amount	Covers all allowed costs (docs, transport, insurance)?
8	Currency/payment	Payable at sight or later? Drawn on your bank or theirs?
9	Insurance	Who insures? If importer, do you have proof of cover?
10	Shipping terms	Incoterm stated correctly (EXW/FAS/FOB/CFR/CIF)?
11	Shipping date	Enough time to produce and ship by the date?
12	Transport charges	Freight prepaid or collect? Who pays?
13	Partial shipments	Allowed, or must it all ship at once?
14	Transshipment	Can goods transfer to another vessel en route?
15	Documents	Can you get every document in the exact form and validity?
16	Presentation & expiry	Enough time to present docs? Can you comply before it expires?