SAMPLE LETTER OF CREDIT

SAMPLE LETTER OF CREDIT Sample Letter of Credit - SWIFT Format 700 Issue of a Documentary Credit Reference: XXXXX To: ADVISING BANK’S SWIFT ADDRESS ADVISING BANK’S NAME From: ISSUING BANK’S SWIFT ADDRESS ISSUING BANK’S NAME 27 Sequence of total 1/1 40A Form of Documentary Credit IRREVOCABLE 20 Documentary Credit Number XXXXX 31C Date of Issue XX/XX/XX 31D Date and place of expiry XX/XX/XX 50 Applicant APPLICANT’S NAME AND ADDRESS 59 Beneficiary BENEFICIARY’S NAME AND ADDRESS 32B Currency Code, Amount USD XXXXX 41D Available with. . . ANY BANK BY NEGOTIATION 42C Drafts at . . . SIGHT 42D Drawee ISSUING BANK NAME 43P Partial Shipments NOT ALLOWED 43T Transshipment ALLOWED 44A Loading on Board/Dispatch/Taking in Charge at/from USA AIRPORT 44B For Transportation to . . . (insert name of airport) 44C Latest Date of Shipment XX/XX/XX 46A Documents required: AIR WAYBILLS CONSIGNED TO ISSUING BANK MARKED ‘FREIGHT COLLECT’ AND ‘NOTIFY ACCOUNTEE’. SIGNED COMMERCIAL INVOICE IN QUINTUPLICATE. PACKING LIST IN TRIPLICATE 71B Charges ALL BANKING CHARGES OUTSIDE KOREA ARE FOR ACCOUNT OF BENEFICIARY 49 Confirmation instruction WITHOUT 53A Reimbursement Bank REIMBURSING BANK’S NAME 78 Instructions to Paying/Accepting/Negotiating Bank THE NEGOTIATING BANK IS TO CLAIM PROCEEDS FROM OUR NEW YORK BRANCH 45B Shipment of Goods DISCRIPTION OF MERCHANDISE AS PER ORDER NUMBER XXXXX 47B Additional conditions CONDITIONS STATED WHICH ARE RELATIVE TO THE TRANSACTION Instructions to the Buyer for Opening a Letter Of Credit Date: __________________ Proforma Invoice: ____________________ Your Ref: _______________ Your Ref and Date: ___________________ We have indicated below those terms and conditions we would find acceptable in a Letter of Credit issued by your bank. Your efforts to comply with these terms and conditions in the issuance of this Letter of Credit will assure prompt dispatch of your order. If your bank is unable to issue the credit within the following guidelines, please contact us for agreement on those areas that must be altered. This will eliminate needless costs involved in amendments and delays after the credit has been opened. Only the items marked with an “X” will apply: ___ The Letter of Credit is to be drawn in irrevocable form and is subject to the Uniform Customs and Practice for Documentary Credits, as published and updated from time to time by the International Chamber of Commerce. ___ This Letter of Credit is to be advised by: ___ Name of Bank Attn: International Dept. Street Address City, State, Postal Code USA Telex/SWIFT information Telephone Number FAX Number ___ The beneficiary is to be shown as: ______________________________________ ___ The letter of credit is to be negotiable by any bank. ___ The letter of credit is to be payable: ___ At sight ___ At _______ days sight ___ At _______ days from bill of lading ___ The amount of the letter of credit is to be: ___ US Dollars_____________________________ ___ Other_________________________________ ___ Exactly ___ About ___ The merchandise description should read as follows: ____________________________________________ ____________________________________________ ____________________________________________ ___ Transshipments: ___ Permitted ___ Not permitted ___ Partial shipments: ___ Permitted ___ Not permitted ___ We agree to provide the following documents if required in the letter of credit. Any other documents must be agreed to by us prior to the issuance of the letter of credit: ___ Commercial invoice, one original and ___ copies ___ Packing list in ___ copies ___ Insurance certificate for 110% of invoice value covering all risks, war risks, SRCC, and____________________________ ___ Other documents: _________________________ ___ Select one of the following: ___ Full set of clean on board ocean bills of lading consigned to order of:_______________________________________ ___ Airway bill consigned to: _____________________ ___ House airway bills allowed (air shipments only) ___ Multimodal bill of lading allowed Transport document to be marked: ___ Freight Prepaid ___ Freight Collect ___ Notify Party: ______________________________ ___ ___ Shipping terms in accordance with INCOTERMS 2000 (select only one): If goods available to buyer prior to main transport: ___ Ex Works (EXW): _________________________ ___ Free Carrier (FCA): ________________________ If air shipments: ___ Free Carrier (FCA): ________________________ ___ Carriage Paid To (CPT): ____________________ ___ Carriage and Insurance Paid (CIP):_____________ If ocean shipments: ___ Free Along Side (FAS): _____________________ ___ Free on board (FOB):_______________________ ___ Cost and Freight (CFR):_____________________ ___ Cost, Insurance and Freight (CIF):______________________ ___ The Letter of Credit is to specify that all banking charges: ___ Will be paid by the applicant ___ In the United States will be paid by the beneficiary ___ The documents must be presented within ___ days from the date of the transport document, but not later than _______________ ___ Other special instructions: ___________________________________ ___ Please fax us a copy of the completed application for this letter of credit and wait for our agreement prior to delivering it to your bank