1. International Credit Executives Group
Advanced Letter of Credit Workshop
Nancy Ebben, Oshkosh Corporation
May 17, 2018

2. Your Pro Forma Invoice and Setting up Your Letter of Credit
Oshkosh Corporation Business Segments:
Access Equipment
JLG, Jerr-dan
Defense
Oshkosh Defense, LLC
Commercial
McNeilus, Iowa Mold Tooling,
Con-e- Co, London Machinery
Fire and Emergency
Pierce, Airport, Frontline
LETTER OF CREDIT WORKSHOP
11/14/2018

3. Your Pro Forma Invoice and Setting up Your Letter of Credit
Type of Opportunities:
Public Tender
Conditions of opportunity clearly defined.
Sole Source
Work with the Buyer to negotiate terms and conditions
LETTER OF CREDIT WORKSHOP
11/14/2018

4. Your Pro Forma Invoice and Setting up Your Letter of Credit
What constitutes an Order :
Distributor Agreement in place, if required
Signed Quote
Purchase Order/Purchase Agreement
Contract
Defines the Buyer and Seller, Currency and Amount, Product and Quantity, Payment Terms, Incoterms, and Delivery requirements.
Dated and signed by both parties
LETTER OF CREDIT WORKSHOP
11/14/2018

5. Your Pro Forma Invoice and Setting up Your Letter of Credit
Booking an Order :
“Got An Order” Meeting
Details reviewed by International Shared Services, Business Unit, Legal, Environmental, Risk, Safety and Compliance, Tax (DDP) and Export Compliance, etc.
Financing in Place
Advance Payment Guarantee and/or Performance Guarantees issued,
Required Payment Received, if required
Commercial Letter of Credit Received, if and when required
Credit Approved, prior to shipment or open account
LETTER OF CREDIT WORKSHOP
11/14/2018

6. Your Pro Forma Invoice and Setting up Your Letter of Credit
Payment Terms:
Cash in Advance
Irrevocable Letter of Credit
Advised and/or Confirmed
Payable at sight or acceptance
Documentary Collection
Acceptance with “Aval”
Open Account
Supported with Credit Insurance or Standby LC
Combination of the Above
LETTER OF CREDIT WORKSHOP
11/14/2018

7. Your Pro Forma Invoice and Setting up Your Letter of Credit
Cash In Advance:
Proforma Invoice to be consistent with
Quote or PO/Contract and include:
Buyer and Seller Name and Address
Contract or P.O. Reference No.
Product Description and Quantity
Currency and Amount
Incoterm
Amount Due
Payment Instructions
Signature (identified)
LETTER OF CREDIT WORKSHOP
11/14/2018

8. Your Pro Forma Invoice and Setting up Your Letter of Credit
Letter of Credit Concerns:
43P: Partial Shipments: Allowed
Vehicles ship on Ro Ro vessel and vessel does not always take containers.
We may have hazardous materials and captain must accept and some equipment may require an export license.
We take parts off the vehicles to minimize damage and theft.
If not allowed, Quantity will not match on Invoice and Bill of Lading
Statement: Parts taken off truck for shipping purposes only
43T: Transshipment: Allowed
44E: Port of Discharge: Tianjin, China
Transship port (Yokohama) shows in Port of Discharge with Tianjin as Place of Delivery.
Statement: *Port of Transshipment **Port of final discharge
LETTER OF CREDIT WORKSHOP
11/14/2018

9. Your Pro Forma Invoice and Setting up Your Letter of Credit
Letter of Credit Concerns:
45A: Description of Goods and/or Services:
Commodity: Contender Pumper
Quantity: 39 units
Price Term CFR Tianjin, China
46A: Documents Required:
Commercial Invoice to show 100% of CFR value less 15% down payment received outside letter of credit.
Certificate of Origin certified by Chamber of Commerce versus issued by Chamber of Commerce
Be aware of the requirement for consularization
LETTER OF CREDIT WORKSHOP
11/14/2018

10. Your Pro Forma Invoice and Setting up Your Letter of Credit
Letter of Credit Concerns:
46A: Documents Required:
Final Acceptance Certificate issued and/or signed by Buyer in country.
48: Period for Presentation
Documents to be presented within 180 days after shipment date but within the validity of the credit OR within the validity of the credit versus the standard 21 days to allow for delivery and acceptance.
31D: Expiry Date
Expiry date needs to be 180 days after
44C: Latest Ship Date:
LETTER OF CREDIT WORKSHOP
11/14/2018

11. Your Pro Forma Invoice and Setting up Your Letter of Credit
Incoterms and Revenue Recognition:
F terms
Risk and Costs transfer at US point or port
Responsibility to file AES or get copy from the Buyer or Buyer’s forwarder
Revenue recognition at US point or port
C Terms
Risk transfers at US point or port, Costs transfer at destination
Revenue recognition at US port or arrival at foreign destination
D terms
Goods are unloaded and placed at the disposal of the Buyer at an agreed upon place of destination
LETTER OF CREDIT WORKSHOP
11/14/2018

12. Questions or Comments?
LETTER OF CREDIT WORKSHOP
11/14/2018

13. Thank You!
Xie xie
LETTER OF CREDIT WORKSHOP
11/14/2018