Proper control of the date of shipment is very important in the exporting. A delayed shipment may mean losing the order and the customer's trust.
In the sample letter of credit (L/C) the latest shipment is March 19, 2001. The latest negotiation is 15 days after the date of shipment which would be April 3, 2001, but the L/C expires on March 26, 2001. Hence, the latest negotiation date would be March 26, 2001 if the shipment is on March 19, 2001, which means that the UVW Exports must present the documents to The Moon Bank within 7 days after the date of shipment.
The Earliest Date of Shipment
Importers may stipulate in the letter of credit (L/C) an earliest date of shipment to prevent the exporter from shipping the goods too early, thus avoiding the high inventory, warehouse congestion and financial strain.
The Latest Date of Shipment
The latest date of shipment or the last date for shipment stipulated in the letter of credit (L/C) prevents the exporter from shipping the goods too late, thus avoiding an inventory shortage. This stipulation is important especially for seasonal goods or during a currency devaluation in the importing country, in which a late shipment may render the goods unsaleable or cost more to the importer.
Disregarded Expressions as to the Date for Shipment
Expressions such as "immediately", "promptly", "as soon as possible" and the like should not be used for shipments. If they are stated in the letter of credit (L/C), the bank will disregard them.
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