How to Negotiate Workable Letter of Credit Terms Before Shipment
Which Letter of Credit terms exporters should negotiate in the sales contract to make compliance realistic.
Reviewed by LCCheck team (owner-approved) · 2026-10-12
Short answer
The best time to negotiate Letter of Credit terms is in the sales contract, before the credit is issued. Agree realistic dates, a sensible presentation period, documents you can obtain, charges allocation, confirmation and expiry in your country — and ask to see a draft before issuance.
| When | In the sales contract |
|---|---|
| Ask for | A draft before issuance |
| Focus | Dates, documents, conditions, charges |
Terms to negotiate
- Latest shipment with a buffer.
- Presentation period of at least 21 days.
- Expiry and place in your country.
- Only documents you control.
- No buyer-signed documents.
- Tolerance on quantity and amount.
- Partial shipments and transhipment allowed.
- Who pays charges and confirmation.
Sources
General guidance, not legal advice. Your bank examines documents independently.
Related guides
Review your LC requirements
Free snapshot in under a minute. No account needed.
Upload your Letter of Credit
PDF · up to 25 MB