A practical, clause-by-clause LC checklist for Indonesian frozen seafood that prevents short-weight and excess glaze disputes, plus our top 7 payment term + Incoterm pairings for 2025.
If you buy Indonesian frozen seafood and rely on LCs, you already know the pain points. Short weight surprises. Excess glaze. Reefer setpoints that aren’t what you ordered. Documents the bank won’t accept. We’ve lived all of these from the exporter side. Below is the concise, clause-by-clause LC checklist we use with quality‑conscious buyers, followed by the top 7 payment term + Incoterm pairings we recommend for 2025.
The LC clauses that actually prevent short weight and glaze disputes
Here’s the thing. Banks pay against documents, not quality. So the trick is defining the right documents and the right definitions. We focus on three pillars: precise weight definitions, workable inspection evidence, and carrier‑issued temperature proof.
How should net weight be defined for glazed seafood?
Define it in the LC. Don’t assume. We use wording similar to this:
- “Net weight means drained weight excluding ice glaze and excluding all packaging.”
- “Net weight determination per Codex CAC/GL 59-2006 (drained weight for glazed products).”
- “Maximum glaze: 10% of total weight unless otherwise stated on product spec and carton.”
Actionable tip: put the net weight and the allowed glaze percentage on the carton artwork and packing list line by line. For IQF products like Grouper Fillet (IQF) or Frozen Shrimp (Black Tiger, Vannamei & Wild Caught), this reduces on‑arrival debate because customs, surveyors and your warehouse all see the same numbers.
What LC clauses prevent short weight in Indonesian frozen shrimp shipments?
We’ve found this combination works consistently for shrimp, fillets and cephalopods:
- “Packing list and shipper’s weight certificate stating net and gross weight per SKU and total, signed and stamped.”
- “Independent ‘certificate of net weight and glaze’ issued by SGS, Sucofindo or Cotecna at the factory before stuffing. Method: Codex CAC/GL 59-2006.”
- “Quantity tolerance: ±2.0% net weight allowed. LC amount not to be exceeded.”
Why it works: the supplier’s certificate aligns with the packing list. The third‑party checks method and glaze so the bank has a clean, external document. The explicit tolerance reflects real‑world scale variation without opening the door to material short weight.
How do I specify a maximum ice glaze percentage in an LC?
Be explicit and testable.
- “Ice glaze shall not exceed 10% by weight, determined after removal of glaze per Codex CAC/GL 59-2006.”
- “Certificate of inspection to state measured glaze percentage for each sampled SKU.”
If you need higher glaze for long voyages, state 15–20% with a matching on‑carton declaration. For sashimi‑grade tuna blocks like Yellowfin Saku (Sushi Grade), we often run minimal glaze and rely on deep‑freeze temperature control instead.
Can a bank accept temperature logger reports as LC documents?
They can, but you probably shouldn’t force it. Banks will check any document the LC calls for, but logger printouts are risky because devices fail, printers jam, and carriers sometimes hold the logger. We prefer a carrier‑issued document the bank can easily verify:
- “Carrier’s ‘reefer temperature setting certificate’ or ‘reefer load plan’ showing setpoint at −18°C or below for frozen fish, −20°C or below for tuna, or −30°C or below for sashimi blocks, issued and signed by the ocean carrier.”
If you still want logger data, don’t make it a condition of payment. Say: “Temperature logger data to be provided to applicant after sailing.” You’ll keep visibility without creating a discrepancy trap.
Which third‑party inspection certificates are acceptable for seafood LCs?
Banks accept what the LC specifies. In Indonesia, we see smooth acceptance with:
- SGS.
- Sucofindo (state‑owned, familiar with fisheries).
- Cotecna, Intertek and Bureau Veritas also operate widely.
Make timing clear to avoid delays: “Inspection to take place at the factory before container stuffing. Certificate to state net weight, glaze percentage, product description, batch/lot, and container number.” If you need microbiology for ready‑to‑eat or sushi use, require “COA by ISO/IEC 17025 accredited lab” with methods named.
What weight variance tolerance is standard in seafood LCs?
For containerized frozen seafood, ±2% of net weight is a practical norm. If grades are highly mixed or you’re buying whole fish like Corvina Whole Cleaned (WGGS), ±3% can be justified. Couple it with “LC amount not to be exceeded” so drawings can’t go over the credit. Remember UCP 600 has its own tolerance rules. Your explicit clause will govern how the bank reads quantity.
Which documents verify phosphate levels or additives in shrimp?
Two documents work well in tandem:
- “Manufacturer’s declaration of composition stating no added phosphates (E451/E452) and no moisture retainers. If used, list additive name, INS number and dosage.”
- “COA by ISO/IEC 17025 lab showing phosphate as P2O5 and moisture content, method AOAC/ISO, lot-specific.”
For EU buyers also require “Added water declaration per Regulation (EU) labelling rules” and align with your product spec on expected moisture. We do this routinely on Indonesian Frozen Shrimp.
Must the LC call for BKIPM health certificates?
Yes, if your destination requires competent‑authority health documents. Indonesia’s BKIPM (Fisheries Quarantine) issues Health Certificates and Catch Certificates. The LC can say: “Original BKIPM Health Certificate.” For IUU compliance, add “Catch Certificate as applicable.” We also see some buyers require “Harvest vessel list” for tuna like Yellowfin Steak and Bigeye Loin.
Sample LC wording you can adapt
Use these as building blocks. Keep it short and bankable.
- Net weight and glaze: “Certificate of net weight and glaze issued by SGS/Sucofindo/Cotecna at factory prior to stuffing. Net weight equals drained weight excluding glaze and packaging, determined per Codex CAC/GL 59-2006. Glaze not to exceed 10%.”
- Temperature: “Carrier certificate confirming reefer pre‑trip inspection completed and setpoint maintained at −18°C or below for entire voyage. Setpoint shown on bill of lading or carrier document.”
- Additives: “Manufacturer’s declaration confirming no added phosphates E451/E452 and no moisture retainers. COA by ISO/IEC 17025 lab showing phosphate (P2O5) and moisture results, lot‑specific.”
- Tolerance: “Quantity tolerance ±2.0% net weight allowed. LC amount not to be exceeded.”
- Inspection timing: “Third‑party inspection at processor’s facility before container stuffing. Certificate to state SKU, lot/batch, measured glaze %, net weight and container number.”
If you want us to comment on a draft LC clause or share a template tailored to shrimp vs tuna vs cephalopods, Contact us on whatsapp.
Top 7 payment term + Incoterm pairings for Indonesian seafood in 2025
Incoterms 2020 remain current in 2025. These are the combinations we see working best for frozen seafood in reefer containers.
- LC at sight + CIF main port
- Why: Bank needs insurance docs. Seller controls marine insurance and can present policy/certificate cleanly.
- When to use: New relationships or higher‑value shipments like Yellowfin Saku (Sushi Grade).
- LC at sight (deferred 5 days) + FOB load port
- Why: Buyer arranges freight. Slight deferral lets carrier issue a temperature setting certificate and final BL before presentation.
- When to use: Buyers with strong carrier contracts and routing preferences.
- Usance LC 30–60 days (discountable) + CFR destination
- Why: Buyer gets cash‑flow relief. Seller can discount with their bank under UCP 600.
- When to use: Repeat programs, monthly fish or shrimp schedules.
- DP at sight (CAD) + CIF destination
- Why: Lower banking costs than LC, but still document control via bank.
- Risk trade‑off: Slightly higher buyer risk vs LC. Use only after 1–2 successful LCs or strong references.
- 20/80 TT. 20% deposit, 80% against copy docs. + FOB
- Why: Fast and flexible for standard SKUs like Grouper Fillet (IQF) or Loligo Squid (Whole Cleaned).
- Safeguard: Use credit insurance or escrow if first time.
- Transferable LC at sight + CIF
- Why: Works for reputable trading houses supplying supermarkets.
- Note: Keep document list tight so transfer mechanics don’t break presentation.
- Open account 30 days + CIP airfreight (rare)
- Why: For urgent, premium items or samples.
- Caveat: Only with insurance and a long, clean trading history.
Quick rule of thumb: the less you know your counterparty, the more you should favor LC at sight and seller‑controlled documents like insurance. As trust grows, move down the list.
Common mistakes we still see (and how to avoid them)
- Requiring a temperature logger printout as a payment document. Make it post‑sailing to the applicant, and use a carrier setpoint certificate for the bank.
- Vague net weight language. Specify “drained weight” and the Codex method. Tie it to a third‑party inspection at the factory before stuffing.
- Overloaded document list. Keep it to 6–9 documents max. Every extra document is another discrepancy risk.
- Missing carton alignment. Make sure glaze %, net weight, and species match the carton print, packing list, and inspection certificate by SKU.
- Inspection timing at the port. Do it at the factory. Port inspections cause demurrage and sampling chaos.
What’s changed lately and what hasn’t
- Electronic presentation: eUCP is gaining traction, especially for inspection and COA PDFs. If your bank supports eUCP, allow electronic inspection reports.
- Reefer evidence: Carriers are faster issuing digital temperature setpoint certificates tied to the BL. This is more bankable than logger curves.
- Incoterms: No new version this year. Incoterms 2020 still govern. Keep using the 2020 text in contracts and LCs.
Practical takeaways you can use today
- Put “drained weight per Codex CAC/GL 59-2006” and “max glaze 10%” into your next LC draft. Pair it with a factory‑timed SGS/Sucofindo inspection certificate.
- Swap “logger printout” for “carrier setpoint certificate.” Keep loggers for QA, not for bank presentation.
- For shrimp, add a “no phosphates” manufacturer declaration and an ISO 17025 COA. This shuts down the most common additive disputes.
If you need a clause set tailored to your SKU mix or destination, or want to sanity‑check a bank draft, Call us. And if you’re reviewing specs for a new line of IQF portions or sashimi tuna, you can always View our products for reference SKUs and pack formats.