With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
English
With Shipzy, we have significantly reduced document errors, resulting in smoother customs clearance and improved customer satisfaction. It's easy to find all documents in one place. Show More
Tiles Exporter - Morbi
Maintain complete Letter of Credit details, select the correct LC while creating an export or customs invoice, validate expiry dates before use and keep every LC connected with the shipments executed against it.
Shipzy brings LC information into the actual export workflow so your documentation team does not have to depend on separate Excel sheets, PDFs or manual expiry checks.
Manage Letters of Credit Where Your Export Work Actually Happens
For many exporters, LC information is maintained in a PDF received from the buyer or bank.
Someone separately records important dates in Excel.
The documentation team checks the LC again while preparing an invoice.
The logistics team separately monitors the shipment deadline.
Finance tracks utilisation in another sheet.
This creates a simple but important risk:
The LC may exist in the business, but the transaction being executed may not be validated against it.
Shipzy solves this by creating a structured LC Master and connecting that master directly with export invoicing and shipment execution.
What Is a Letter of Credit in Export?
A Letter of Credit (LC) or documentary credit is a banking arrangement commonly used in international trade in which payment depends on presentation of documents that comply with the credit's terms.
Under UCP 600, banks examine the presentation based on the documents themselves. Banks deal with documents rather than the underlying goods, services or performance.
This makes accurate LC information, dates and documentary conditions especially important for exporters.
An operational LC workflow therefore needs to connect:
Maintain a Complete LC Master in Shipzy
Shipzy allows exporters to create a structured master for every Letter of Credit.
Instead of opening the original LC document every time someone needs a date or reference, important information remains available in the system.
The LC Master can maintain details such as:
LC Number
Record the unique Letter of Credit reference.
Buyer / Applicant
Identify the overseas customer against whom the LC was issued.
Beneficiary
Maintain the exporter or beneficiary details.
Issuing Bank
Record the bank that issued the Letter of Credit.
Advising Bank
Maintain the advising-bank information where applicable.
LC Amount and Currency
Record the total LC value and the applicable transaction currency.
Issuance Date
Record when the LC was issued.
Latest Shipment Date
Maintain the last permitted shipment date where applicable.
Expiry Date
Keep the LC expiry date clearly visible.
Payment and Shipment Terms
Store the relevant payment conditions and commercial or shipment-related terms required for operational reference.
LC Status
Track whether the LC is:
Supporting Documents
Store the LC and related amendment documents for future reference.
The LC Master Becomes Part of Export Invoicing
The value of LC management is not only storing LC information.
Shipzy uses the LC Master during actual export execution.
When a user creates an Export Invoice or Customs Invoice, Shipzy asks whether the shipment is being executed against an LC.
If the answer is yes, the user selects the applicable Letter of Credit from the available LC Master.
The workflow becomes:
This creates a direct relationship between the export transaction and the Letter of Credit used for it.
Prevent an Expired LC from Being Used by Mistake
This is one of the most important controls in Shipzy's LC workflow.
When the documentation team selects an LC while preparing an invoice, Shipzy can compare the current transaction with the expiry information stored in the LC Master.
Suppose:
LC Number: LC-2026-1045
Expiry Date: 15 October 2026
If a user tries to select this LC after 15 October 2026, Shipzy can immediately notify the user.
Example Warning: Selected LC Has Expired
The selected Letter of Credit expired on 15 October 2026.
Please verify whether an amendment or revised LC is available before using this LC for the shipment.
This gives the user a checkpoint while the invoice is being prepared instead of discovering the issue later.
Validate the LC at the Point of Execution
A date stored in an LC register is useful.
A date checked when someone actually uses the LC is much more useful.
Shipzy moves the validation closer to the transaction.
When an LC is selected, the user can review important information such as:
The system therefore helps the documentation team identify an obvious problem before the invoice proceeds further.
From LC Master to Invoice-Level Control
The LC workflow in Shipzy can be understood in a simple sequence:
This turns LC management from passive record keeping into an operational control inside the export workflow.
Know Which LC Was Used for Each Shipment
Once an LC is selected during invoicing, Shipzy keeps the relationship between the LC and export transaction visible.
For example:
LC: LC-2026-1045
Linked Export Transactions:
This allows teams to answer two important questions quickly:
Which LC was used for this shipment?
Which shipments were executed against this LC?
Track Multiple Shipments Against One LC
A Letter of Credit may support more than one shipment depending on its terms.
For example:
LC Value: USD 500,000
This gives the team clearer visibility into the transactions associated with the LC.
Where LC utilisation or balance information is maintained operationally in Shipzy, those figures should be reconciled with the applicable banking records and LC terms.
Keep LC Expiry and Shipment Dates Separately Visible
LC expiry and shipment deadlines should not be treated as the same date.
An LC can contain different operational deadlines, including:
Under UCP 600, a documentary credit must state an expiry date for presentation. For presentations containing specified original transport documents, the default rule is generally presentation no later than 21 calendar days after shipment and, in any event, no later than the credit's expiry date, unless the credit provides otherwise.
Shipzy can maintain the relevant dates separately so users do not rely on one generic "LC expiry" field for every operational decision.
Manage Draft LC and Final LC Separately
Many exporters receive a Draft LC before the final Letter of Credit is issued.
The draft gives the exporter an opportunity to review commercial and documentary conditions before shipment planning progresses too far.
A structured workflow can be:
This helps the team avoid treating a proposed draft and an issued LC as the same thing.
Manage LC Amendments Without Losing the Original History
Letter of Credit conditions can change after issuance.
An amendment may affect:
Instead of simply overwriting the old information, Shipzy can maintain the amendment against the relevant LC record.
The workflow becomes:
This gives the team better visibility into what changed and helps reduce the risk of someone working from an outdated LC copy.
UCP 600 contains specific provisions governing amendments to documentary credits.
Avoid Working from an Old LC Version
Consider this situation:
Original LC
Expiry: 15 October
Latest Shipment: 30 September
Amendment
Expiry: 15 November
Latest Shipment: 31 October
If one team is working from the original LC while another is working from the amendment, operational mistakes can happen even though both teams technically "have the LC."
A structured LC record makes the currently applicable information easier to identify.
Keep LC Requirements Connected with Export Documentation
LC-backed exports are document-sensitive.
Depending on the credit, required documents may include:
The exact requirement depends on the individual LC.
Shipzy's export documentation workflow already manages key export documents in one connected environment, including commercial invoices, packing lists and BL-draft related processes.
Connecting LC information with that workflow gives the documentation team useful context while preparing the shipment.
Why LC Document Accuracy Matters
Under UCP 600, banks examine presentations based on the documents to determine whether they appear to constitute a complying presentation.
Banks have a maximum of five banking days following the day of presentation to make that determination.
The exporter therefore needs to pay attention to the relationship between the LC and shipment documents.
Examples include:
Reduce Avoidable LC Mistakes Before Shipment
Some LC problems are not complex banking issues.
They are simple operational mistakes that could have been identified earlier.
Expired LC
The documentation team selects an LC whose expiry date has already passed.
Shipzy Control: Show expiry warning during invoice creation.
Wrong LC Selected
Two active LCs exist for the same buyer.
Shipzy Control: User selects the specific LC from the master and the invoice remains linked to it.
Old LC Version Used
An amendment changed important dates.
Shipzy Control: Maintain amendment information against the relevant LC.
Shipment Deadline Approaching
The LC latest shipment date is close while the shipment is still not ready.
Shipzy Control: Keep important LC dates visible in the operational workflow.
No Clear Transaction History
Months later, the team needs to identify which export invoice used a particular LC.
Shipzy Control: Maintain LC-to-invoice and LC-to-shipment traceability.
LC Management and Shipment Execution Should Work Together
A Letter of Credit is not only a finance document.
Its dates and conditions can directly affect:
For example, if the latest shipment date is approaching while production is still pending, the issue needs operational attention.
A standalone LC Excel file may tell finance that a deadline exists.
A connected export workflow helps make that deadline relevant to the team actually executing the export shipment execution.
LC Management for Manufacturer Exporters
For manufacturer exporters, the LC can be connected with a broader workflow:
This helps connect payment conditions with production and shipment readiness.
LC Management for Merchant Exporters
For merchant exporters, the workflow may look like:
If supplier material is delayed while the LC shipment deadline is approaching, that information becomes operationally important.
Track Multiple Letters of Credit in One Place
Exporters working with several overseas buyers may have multiple active LCs at the same time.
A centralized LC view can help teams review:
| LC Number | Buyer | Currency | Amount | Latest Shipment | Expiry | Status |
|---|---|---|---|---|---|---|
| LC-101 | Buyer A | USD | 250,000 | 15 Nov | 05 Dec | Active |
| LC-102 | Buyer B | EUR | 180,000 | 25 Nov | 15 Dec | Part Utilised |
| LC-103 | Buyer C | USD | 500,000 | 10 Dec | 31 Dec | Under Review |
Instead of opening individual LC files, management gets a clearer view of the LC portfolio.
LC Reports and Management Visibility
Shipzy can provide an LC-level reporting view so teams can review important information quickly.
A useful report can include:
This helps finance, documentation and management identify which LCs require attention.
See Important LC Risks Before They Become Urgent
LCs Near Expiry
Know which active LCs are approaching expiry.
Expired LCs
Identify expired Letters of Credit clearly.
Upcoming Shipment Deadlines
See LCs where the latest shipment date is approaching.
Draft LCs Pending Finalisation
Know which orders still depend on final LC issuance.
Amended LCs
Keep amended credits distinguishable from the original version.
LCs with Linked Export Activity
See which invoices and shipments have already used the Letter of Credit.
LC-to-Invoice Traceability
One of the most practical outcomes of connected LC management is traceability.
From an LC record, the team can identify:
LC
→ Export Invoice
→ Customs Invoice
→ Shipment
From an invoice, the team can identify:
Export Invoice
→ Selected LC
This relationship is useful for:
Shipzy LC Management Workflow
1. Receive the LC
Receive the Letter of Credit from the buyer or bank.
2. Create the LC Master
Enter the important LC information into Shipzy.
3. Record Important Dates
Maintain issuance date, latest shipment date, expiry date and other relevant dates.
4. Maintain LC Terms
Record amount, currency, banks, payment information and operational conditions.
5. Record Amendments
Update the LC record when an applicable amendment is received.
6. Create Export / Customs Invoice
Prepare the shipment invoice through Shipzy.
7. Select LC
Identify whether the shipment uses an LC and select the correct LC from the master.
8. Validate Expiry
Shipzy checks the stored LC expiry information.
9. Show Warning When Required
If the selected LC has expired, notify the user before proceeding.
10. Maintain Transaction Link
Keep the selected LC connected with the invoice and shipment.
11. Review Through Reports
See LC information, important dates and linked transactions from one operational view.
Recommended Workflow
LC control at the exact point where your export team uses it.
Why Exporters Use Shipzy for LC Management
Shipzy does not treat the Letter of Credit as just another uploaded document.
It connects LC information with the actual export transaction.
Instead of maintaining LC PDFs, expiry spreadsheets, invoice files, shipment trackers and amendment emails separately, the team gets a more connected workflow:
This helps exporters move from remembering to check the LC to building the LC check into the workflow.
Shipzy Does Not Replace Bank Examination
Shipzy helps exporters maintain LC information, validate operational data and connect the LC with export execution.
It does not determine whether a presentation is compliant or whether a bank must honour the credit.
Under UCP 600, the applicable nominated, confirming and issuing banks examine the presentation to determine whether the documents constitute a complying presentation.
Shipzy's role is to help the exporter improve operational control before documents reach that stage.
Frequently Asked Questions
What is a Letter of Credit in export?
A Letter of Credit is a documentary payment arrangement commonly used in international trade where payment depends on presentation of documents complying with the terms of the credit.
What is an LC Master in Shipzy?
An LC Master is the structured record of a Letter of Credit in Shipzy. It can maintain information such as LC number, buyer, issuing bank, amount, currency, issuance date, latest shipment date, expiry date, status and amendment information.
Can Shipzy link an LC with an export invoice?
Yes. While creating an Export Invoice or Customs Invoice, the user can indicate that the shipment is LC-based and select the applicable LC from the LC Master.
What happens if the selected LC has expired?
Shipzy can validate the expiry date stored in the LC Master and notify the user when an expired LC is selected for an export transaction.
Why is LC expiry validation important?
It helps prevent users from unknowingly proceeding with an expired LC simply because an old LC number or document is still available to the team.
Can Shipzy show which shipment used a particular LC?
Yes. Because the LC is selected against the export transaction, the system can maintain a relationship between the LC, invoice and shipment.
Can Shipzy track multiple Letters of Credit?
Yes. Multiple LCs can be maintained separately with their respective buyers, amounts, currencies, dates, statuses and linked export transactions.
Can one LC be linked with multiple export invoices?
Where the underlying Letter of Credit permits multiple shipments or utilisation, relevant export transactions can be linked with the same LC for operational visibility.
Can Shipzy maintain LC amendments?
Yes. Amendment information can be maintained against the relevant LC so teams have better visibility into revised dates and terms.
What is the difference between the latest shipment date and LC expiry date?
The latest shipment date relates to when shipment must occur under the LC terms, while the expiry date relates to the applicable deadline for presentation under the credit. They should be maintained and monitored separately.
What is UCP 600?
UCP 600 is the ICC's Uniform Customs and Practice for Documentary Credits. It contains widely used rules for documentary credits when incorporated into the Letter of Credit.
Does Shipzy guarantee that LC documents will be accepted by the bank?
No. Shipzy supports LC information management and export workflow controls. Final documentary examination, discrepancy decisions and honour or refusal remain subject to the Letter of Credit, applicable rules and the relevant banks.
Related Shipzy Solutions
Bring Letter of Credit information into the export transaction where your team actually uses it.
Maintain LC records, validate expiry at invoice creation, connect shipments and review LC-level activity from one connected export workflow.
Book a Shipzy DemoSee how Shipzy can help your documentation, finance and operations teams manage Letters of Credit with better visibility and control.