Entering into a contract
The contract between you and the seller determines the conditions under which the documentary credit will be issued.

The seller is not always aware of which documents are required when goods are to be imported to your country. It is therefore important that you specify your exact document requirements when entering into the contract.

If the documentary credit is not issued in accordance with the original agreement between the buyer and the seller, the goods might be delayed or there could be a direct breach of the contract. There must therefore be agreement on all the conditions, including time limits for shipment, presentation of documents and expiry.

Opening the documentary credit
Before you ask Northern Bank to open a documentary credit, you should be aware that the documentary credit cannot be cancelled or amended unless all parties agree to do so.

The documentary credit is legally independent of the contract, which means that any changes to the contract are not automatically valid for the documentary credit.