Sample of Letter of Credit

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  • Topic: Legal documents, Trade finance, Bill of lading
  • Pages : 4 (697 words )
  • Download(s) : 232
  • Published : December 6, 2011
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Avoiding Documentary Credit Problems
1. Sending the buyer a letter of credit proforma To avoid problems and delays in payment, it is recommended that the exporter convey in writing some guidelines to the buyer as to what terms the credit should contain, the complete name and address of the bank to which the letter of credit should advised by the opening bank, and details of shipment terms. If these are spelled out in advance of the issuance of the credit than costly amendments may not be required. A sample letter of credit template, or proforma, is indicated below:

SAMPLE LETTER OF CREDIT TEMPLATE / PROFORMA
TO: { BUYER} PROFORMA INVOICE: YOUR REF.: YOUR REF. DATE:

We have indicated below those terms and conditions that we would find acceptable in a letter of credit issued by your bank. Your efforts to gain compliance with these terms and conditions in the issuance of this letter of credit will ensure prompt dispatch of your order. If your bank is unable to issue the credit within the following guidelines, please contact us providing information on those areas that must be altered. This will eliminate needless delay and costs involved with amendments after the credit has been opened. Only those items marked with an "X" will apply. 1. [ ] The letter of credit is to be irrevocable and subject to the Uniform Customs and practice for Documentary Credits, as published and updated from time to time by the International Chamber of Commerce. [ ] The letter of credit is to be [ ] Advised [ ] Confirmed by our bank: KeyBank National Association Attn: International Operations Telex No.: 212525 SNB UR SWIFT No.: KEYBUS33 ABA.: 041001039 [ ] The beneficiary is to be shown as:

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[ ] The letter of credit is to be payable upon presentation of drafts drawn A. [ ] B. [ ] C. [ ] D. [ ] At sight ___ days after the date of the transport document (i.e., 90 days after date of B/L) ___ days after sight (i.e., 90 days after sight) Other:...
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