L/C Certification

We have a new website. Please visit mevas.net

Third party inspection for a Letter of Credit

We provide inspection of heavy machinery in many places in Europe and the Middle-East. If an independent certification of machinery is required by the bank for opening an L/C we can support you.

Valuation of machinery and trucks

You are a banker and need technical advise about the items you shall finance? Our expertise can help you understanding what machine or truck it is. Is the item correctly valued? Can we support your leasing business? Is the condition wort the value on paper? Call the machine experts for advise.

Verification for B/L

if you need a check-up for a letter of credit if all items are in the port, if all items of your packing list are on site, we can help you for a reasonable fee with port cargo survey. Did your carrier deliver what is listed on the Bill of Lading? Is the item the same as listed in your documents?

Not only for Heavy Machinery

Our core business is quality inspection on heavy machinery. But since we have inspectors traveling frequently in Belgium ant the Netherlands we are able to offer inspections for other goods in the ports of Antwerp, Rotterdam, Moerdijk, Zeebrugge or Vlissingen. If you have trucks, cranes, excavators or other larger equipment we can help.

Feel free to ask for a quotation. Please send us a description of items, tell us the day you need the inspections and how flexible the inspection date is.

Important: You need to clarify with the port authority or with your shipping agent what kind of documents we need to provide for the access to the port. We need the port number, access address, a contact name on site including telephone number and his E-Mail address.

What is a letter of credit and what is it used for when trading construction machinery?

A letter of credit (LC) is a financial instrument commonly used in international trade, including the trading of construction machinery. It is a written commitment from a bank or financial institution on behalf of a buyer (importer) to pay the seller (exporter) a specified amount of money upon the fulfillment of certain conditions and documentation. Letters of credit provide a level of security and trust between the parties involved in a transaction, especially in cross-border trade where there may be concerns about payment and delivery.

When trading construction machinery, a letter of credit serves several essential purposes:

1. •Payment Security• An LC assures the seller that they will receive payment once they fulfill the terms and conditions specified in the letter of credit. This mitigates the risk of non-payment and provides financial security to the seller.

2. •Trade Terms Compliance• The letter of credit outlines the terms and conditions that the seller must meet to receive payment. These terms typically align with international trade standards, such as those defined by the International Chamber of Commerce (ICC) in its Uniform Customs and Practice for Documentary Credits (UCP 600).

3. •Documentation Control• The LC specifies the documents the seller must provide to prove that they have fulfilled the contractual obligations, including shipping documents, inspection certificates, and invoices. This ensures that all necessary documentation is in order before payment is made.

4. •Quality Assurance• Letters of credit may require inspection or quality certification of the construction machinery. This helps ensure that the machinery meets the buyer's specified standards before payment is released.

5. •Risk Mitigation• Both the buyer and the seller can use an LC to mitigate various risks associated with international trade, including currency exchange rate fluctuations, political instability, and issues with the seller's or buyer's creditworthiness.

Here's how a letter of credit typically works in the context of trading construction machinery:

1. •Opening the Letter of Credit• The buyer's bank (issuing bank) opens the LC in favor of the seller (beneficiary). The LC outlines the terms and conditions, including the payment amount, shipment details, documents required, and the expiry date of the LC.

2. •Shipping and Documentation• The seller ships the construction machinery to the buyer and collects all necessary documents required by the LC. These documents may include the commercial invoice, bill of lading, certificate of origin, inspection certificates, and other relevant paperwork.

3. •Presenting Documents• The seller submits the required documents to the buyer's bank (advising or confirming bank) within the LC's validity period.

4. •Document Examination• The advising or confirming bank reviews the documents to ensure they comply with the LC's terms and conditions. If the documents are in order, the bank forwards them to the issuing bank.

5. •Payment• Upon verifying the documents, the issuing bank makes payment to the seller as per the LC's instructions.

6. •Transfer of Ownership• With payment made, ownership of the construction machinery is transferred to the buyer.

Letters of credit are a valuable tool in international trade, providing a level of security and trust to both buyers and sellers. However, they can be complex and involve various fees and charges, so it's important for all parties involved to understand the terms and conditions thoroughly. It's also advisable to seek legal and financial advice when dealing with letters of credit in international trade.