A Letter of Credit Instructions Form
LETTER OF CREDIT INSTRUCTIONS
Date:
To: From
Address
City & State
Country Zip Code
Attn
Telephone
Fax
RE: Our Pro-Forma Invoice# Dated
Gentlemen:
In connection with your above-referenced purchase, the following terms and conditions are for inclusion in your irrevocable letter of credit. We are providing you with these details as a confirmation of our understanding of the terms of sale covering this transaction. If these details do not agree with your understanding or if you are unable to comply with these terms and conditions, please notify us prior to the issuance of your letter of credit to avoid unnecessary delays and costs. Thank you for your patronage and cooperation.
1. The letter of credit must be issued no later than by a bank acceptable to us.
2. The letter of credit must be irrevocable and be subject to the 2007 Revision of the Uniform Customs and Practice for Documentary Credits published by the International Chamber of Commerce (UCP600).
3. The letter of credit must state that it is available with any bank by negotiation.
4. The letter of credit must be opened with full details by SWIFT
In favor of: [indicate the company name and address you will use
in your invoices; if this is not the address you want
Attn: your L/Cs mailed to, give separate instructions for
Telephone: where this L/C is to be sent]
We will not initiate shipment until the actual letter of credit is received but it may expedite processing if you will fax a copy of the letter of credit to [name] at [e-mail address]. This must be a copy of your bank's actual SWIFT message sent to the advising bank. A copy of your letter of credit application is not sufficient.
5. The letter of credit must be payable in U.S. dollars for
6. The letter of credit must be advised through an acceptable, “prime” U.S. bank such as:
[list your preferred letter of credit advising banks]
7. The letter of credit must authorize the advising bank to add its confirmation only if requested to do so by beneficiary.
8. The letter of credit must authorize the nominated negotiating bank to debit the issuing bank's account with a U.S. reimbursing bank with no deductions. It will expedite processing, and possibly reduce the reimbursing bank's charges, if your bank indicates their account number with the reimbursing bank in the L/C.
9. The letter of credit must be payable against drafts drawn, at the beneficiary's option, on the issuing bank, on the advising bank, or on the reimbursing bank. Drafts must be
10. The letter of credit must indicate:
11. The letter of credit must be transferable by any bank.
12. The letter of credit must allow partial shipments.
13. The latest shipping date in the letter of credit must be at least days after the issuance date of the L/C.
14. The letter of credit must allow a minimum of days after the date of shipment/Forwarder's Cargo Receipt for presentation of documents. Add 14 days if any documents required must be consularized or legalized or if they include an inspection certificate issued by S.G.S. or similar inspection service. Expiration should be this same number of days after the latest shipment date at the counters of the nominated negotiating bank.
15. The letter of credit must require the commercial invoice to describe the merchandise, in accordance with our pro-forma invoice, as (use only generic terms, avoiding details as to grade, quality, etc.):
Paid To) Consolidator's terminal in Buyer's country
16. If you have selected a freight forwarder who will be receiving the goods for consolidation and/or shipment, payment must be available against a Forwarder's Cargo Receipt showing merchandise consigned to/at disposal of yourselves. Otherwise the L/C must require either a multimodal transport document consigned to order of shipper, blank endorsed, showing place of receipt as and place of delivery or final destination as or an air waybill consigned to yourselves showing airport of departure as and airport of destination as . L/C must require the multimodal transport document or air waybill be marked “Freight Prepaid” if terms are CIP or CPT or “Freight Collect” if terms are EXW or FCA.
17. If terms are CIP, you may require a marine cargo insurance certificate covering
If terms are EXW, FCA, or CPT and we are arranging the shipment, you may require a copy of an e-mail or fax message to yourselves giving date and means of shipment and description and value of the goods shipped, certified by the beneficiary (ourselves) to be true and accurate and to have been sent no later than two days after shipment.
We anticipate receipt of your letter of credit conforming to these requirements.
This format is for use in designing a Letter of Credit Instructions form appropriate for your own company.
