Application for opening a letter of credit. Creation of an application for opening a letter of credit in the currency of the Russian Federation
Application for a commercial letter of credit - a document by means of which the bank is instructed to open a commercial letter of credit on the terms specified in this document.
An application for opening a letter of credit is drawn up in triplicate and signed by two authorized persons of the organization, the signatures are affixed with a seal.
In cases where the amount of the letter of credit is expressed in the currency of the contract price, and the payment is stipulated in another currency (payment currency), the application must indicate the conversion rate or the method for determining this rate (for a certain number, for foreign exchange market, for example, in London).
The application form for opening a letter of credit must indicate:
1. Legal name of the organization, on whose behalf the letter of credit is opened, its telephone number and address;
2. Number of the application for a letter of credit and the date of submission to the bank;
3. Method of transferring the terms of the letter of credit abroad (by marking one of the boxes)
4. Type of opened letter of credit:
- the column "transferable" is filled in if there is a corresponding clause
- in the contract;
- the column "confirmed" is filled in with prior consent
- Jar;
5. The name of the advising bank, through which the firm must be notified of the opening of the letter of credit, in a foreign language with the obligatory indication of the city and country of origin of the bank (as a rule, the exporting bank);
6. Name of the confirming bank in a foreign language in case of opening a confirming letter of credit;
7. To be completed according to the terms of the contract;
8. Filled in according to the terms of the contract;
9. Country / city of shipment, for transportation to the country (city);
10. Description of goods in a foreign language without unnecessary details and details, terms of delivery and contract number;
11. List of documents in a foreign language, upon presentation of which payment must be made from a letter of credit (from the terms of the contract), for example:
a) Commercial invoice issued in the name of the buyer, in ____ copies.
b) Transport document (depending on the method of shipment specifically
- bill of lading;
- a duplicate of an air, road, railway consignment note;
- etc.), written out in the name of the applicant of the letter of credit, in ____ copies;
c) Insurance policy / certificate (for shipments on CIF; CIP terms);
d) Other documents (a list of required certificates of quantity, quality, origin, etc., packing lists, specifications is given).
The list of documents can be given in the attachment (such an attachment is drawn up in 3 copies, the second copy is signed with two signatures and sealed, as well as an application for a letter of credit);
12. At whose expense the commission on the letter of credit is paid, and also specifies the special terms of payment under the contract;
13. Specified 21 days, unless otherwise specified in the contract;
14. Indicate the number of the account from which the cover under the letter of credit should be written off (for example: current balance account with currency cipher or current bank account);
15. Account number in column 14;
16. Name of the seller company, in favor of which the letter of credit is opened, with a detailed address in a foreign language;
17. The specific date of expiration of the letter of credit in accordance with the contract, for example, "December 21, 1996", the place of expiration is Moscow or the location of the advising bank;
18. The amount of the letter of credit in foreign currency for example, “US dollars 663,000-00 (six hundred and three thousand 00/100 US dollars)”;
19. Name of the bank that is authorized to make payments under the letter of credit: either BANK or foreign bank on the seller's territory and the column is filled in: "by / x / payment", if, according to the terms of the contract, the payment is made against the documents.
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L / C is conditional pecuniary obligation accepted by the bank on behalf of the payer, make payments in favor of the recipient of funds upon presentation by the latter of documents that meet the terms of the letter of credit, or authorize another bank (nominated bank) to make such payments.
Calculations under letters of credit are applied if such a form of payment is prescribed in an agreement between organizations. Payment monetary documents is made immediately after the supplier has shipped the goods to the buyer.
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How to fill out the letter of credit form correctly
The procedure for settlements under a letter of credit and its validity period are determined in the main agreement concluded between the buyer and the supplier. It is recommended to specify and specify the following information in this agreement:
Name of the issuing bank (buyer's bank);
Beneficiary bank name Money, i.e. supplier;
The name of the recipient of funds (supplier);
The amount of the letter of credit;
Type of letter of credit (covered / uncovered and revocable / irrevocable);
Method of notifying the recipient of funds about opening a letter of credit;
The method of notifying the payer about the account number for depositing funds opened by the nominated bank;
A complete list of documents to be provided by the supplier;
Terms of validity of a letter of credit, submission of documents confirming the shipment of goods (performance of work), and requirements for the execution of these documents;
Payment condition (with or without acceptance);
Responsibility for non-fulfillment or improper fulfillment of obligations.
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Fearful of the risks associated with prepaying a deal? Would you like to be on the safe side as a first-time customer with a new supplier? Take advantage of the letter of credit - one of the most reliable and profitable banking instruments used when concluding contracts.
The letter of credit form of payments is beneficial to both the seller and the buyer. It can be used with equal success not only in domestic transactions, but also in foreign trade operations. Today, settlement services in the form of documentary letters of credit are provided by most large Russian banks.
Letter of credit: what is it in plain language?
Speaking in simple words, a letter of credit is a special account opened with a bank, where you can reserve funds when conducting transactions for the sale of goods or the provision of services (performance of work). If both parties fully comply with the conditions stipulated in the contract, the bank pays the required amount to the account of the recipient (beneficiary).
Thus, the bank acts as a guarantor and takes responsibility for making payments. The supplier is 100% sure that the product / service will be paid for, and the buyer knows that he will be able to pay for them on time and without debt.
Letter of credit form
Acts according to the following scheme.
- The parties conclude a contract, which stipulates the terms of the letter of credit.
- The buyer submits an application to his bank (issuer) to open a letter of credit account and deposits the amount necessary to cover the transaction (makes a reservation).
- After the successful opening of the letter of credit, the issuing bank notifies the seller's bank (advising bank).
- The advising bank notifies the seller about the opening of the letter of credit. The seller ships the goods and provides supporting documents to his bank.
- After checking the documents, the payment is transferred to the seller's account by the issuing bank or the advising bank (depending on the terms of the agreement).
Irrevocable letter of credit
One of the main and frequently used types of documentary calculations. Unlike a revocable letter of credit, a confirmed or unconfirmed irrevocable one is not revoked or changed by any of the parties (including the bank) without the prior consent of the seller / supplier. It is considered the most reliable form of letter of credit, as it completely frees a trade-money transaction from all possible risks, primarily financial.
If in the course of the transaction the supplier and the buyer come to a mutual agreement, the terms of the irrevocable letter of credit may be changed.
Letter of credit agreement
Any information that can subsequently be used when making a trade and monetary transaction and paying for it is stipulated and strictly recorded in the agreement on the transaction, providing for this form of settlement:
- the name of the supplier and recipient,
- type of used letter of credit(irrevocable / revocable, covered / uncovered),
- the amount reserved in the account to pay for the transaction,
- the duration of the obligation,
- the size of the commission,
- payment order,
- procedure in case of non-repayment of debt under a letter of credit,
- the rights and obligations of all parties.
Payment by letter of credit
Settlements by letters of credit provide for the transfer of funds to the seller's account only if all the conditions stipulated by the contract have been met. In particular, money is transferred to the seller's account after the goods have been fully shipped and all the required documents have been submitted to the bank. In the event that the terms of the letter of credit agreement have been violated, the payer (buyer) has the right to refuse payment and return the goods to the supplier.
Nuance: a letter of credit account is opened by the buyer for his own money or with the help of credit funds bank (if you have the right to credit).
Opening a letter of credit
To open a letter of credit account in banking organization a written application is submitted in the appropriate form. The statement indicates:
- number of the agreement under which the letter of credit is opened,
- name and data of the supplier,
- type, validity period, sum of money letter of credit,
- the way to implement it,
- list of shipped (provided) goods / services,
- name of the executing bank for the letter of credit,
- a list of documents that will be used as the basis for the payment of funds to the supplier.
Sravn.ru advice: use the letter of credit form of settlements if you need to conduct safe trade and money transactions with new and "problem" business partners.
Sample letter of credit
Letters of credit are designed to facilitate mutual settlements between counterparties and provide them with the safety of transactions.
Letters of credit are divided into covered with(when the amount is transferred to the beneficiary's bank for the entire duration of the letter of credit) and uncovered(the beneficiary's bank is given the right to write off funds from the correspondent account opened with him within a certain amount), revocable(when the order can be changed or withdrawn by the bank at the initiative of the payer) and irrevocable(when the order can be revoked only if the recipient agrees).
The terms of settlements for letters of credit are prescribed in the agreement between the buyer and the payer.
In particular, the following must be indicated:
- the name of the beneficiary's bank and the payer's bank;
- Supplier name;
- the amount of the letter of credit;
- type of letter of credit - covered / uncovered, revocable / irrevocable;
- validity period of the letter of credit;
- terms of payment under the letter of credit - with or without acceptance;
- responsibility for the fulfillment of obligations;
other important points.
Instructions for filling out a letter of credit
Externally, the letter of credit form is almost identical to a payment order or collection order, and it is filled out similarly:
- Indicate the number of the letter of credit and the date of its preparation;
- The payment amount is written in words (in words): from the beginning of the line with a capital letter, kopecks are indicated in numbers. The words "rubles" and "kopecks" are not abbreviated. In the field "Amount" in the right corner, the amount is indicated in numbers: rubles and kopecks are written with a hyphen.
- The data of the payer is indicated: TIN, if assigned, the payer's r / s number.
- Further, the name of the payer's bank, its BIC, bank account number.
- Below are the details of the beneficiary's bank, its BIC and credit card.
- Beneficiary's name, TIN, if assigned;
- Next, the type of letter of credit is written (revocable / irrevocable or covered / uncovered);
- Payment terms - with or without acceptance (prior agreement);
- Detailed information about the product, the number and date of the contract, the place of destination, the full name of the accompanying document for the product, additional conditions and the recipient's personal account number
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A letter of credit is a conditional monetary obligation, accepted by a bank on behalf of the payer, to make payments in favor of the recipient of funds upon presentation by the latter of documents that meet the conditions of the letter of credit, or to authorize another bank (nominated bank) to make such payments.
Calculations under letters of credit are applied if such a form of payment is prescribed in an agreement between organizations. Payment for monetary documents is made immediately after the supplier has shipped the goods to the buyer.
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How to fill out the letter of credit form correctly
The procedure for settlements under a letter of credit and its validity period are determined in the main agreement concluded between the buyer and the supplier. It is recommended to specify and specify the following information in this agreement:
- name of the issuing bank (buyer's bank);
- the name of the beneficiary's bank, i.e. supplier;
- name of the recipient of funds (supplier);
- type of letter of credit (covered / uncovered and revocable / irrevocable);
- method of notifying the recipient of funds about opening a letter of credit;
- the method of notifying the payer about the account number for depositing funds opened by the nominated bank;
- a complete list of documents to be provided by the supplier;
- the terms of validity of the letter of credit, the submission of documents confirming the shipment of goods (performance of work), and the requirements for the execution of these documents;
- payment condition (with or without acceptance);
- responsibility for non-fulfillment or improper fulfillment of obligations.
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Automatic filling of forms of documents. Save your time. Get rid of mistakes.
Connect to CLASS365 and enjoy the full range of possibilities:
With CLASS365 you can not only prepare documents automatically. CLASS365 allows you to manage an entire company in one system, from any device connected to the Internet. It is easy to organize effective work with clients, partners and personnel, to maintain trade, warehouse and financial records. CLASS365 automates the entire enterprise.
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Application for a letter of credit (form 2). OKUD 1003014
Application for a commercial letter of credit - a document by means of which the bank is instructed to open a commercial letter of credit on the terms specified in this document.
An application for opening a letter of credit is drawn up in triplicate and signed by two authorized persons of the organization, the signatures are affixed with a seal.
In cases where the amount of the letter of credit is expressed in the currency of the contract price, and the payment is stipulated in another currency (payment currency), the application must indicate the conversion rate or the method for determining this rate (for a certain number, in the foreign exchange market, for example, in London ).
1. Legal name of the organization, on whose behalf the letter of credit is opened, its telephone number and address;
2. Number of the application for a letter of credit and the date of submission to the bank;
3. Method of transferring the terms of the letter of credit abroad (by marking one of the boxes)
4. Type of opened letter of credit:
5. The name of the advising bank, through which the firm must be notified of the opening of the letter of credit, in a foreign language with the obligatory indication of the city and country of origin of the bank (as a rule, the exporting bank);
6. Name of the confirming bank in a foreign language in case of opening a confirming letter of credit;
7. To be completed according to the terms of the contract;
8. Filled in according to the terms of the contract;
9. Country / city of shipment, for transportation to the country (city);
10. Description of goods in a foreign language without unnecessary details and details, terms of delivery and contract number;
11. List of documents in a foreign language, upon presentation of which payment must be made from a letter of credit (from the terms of the contract), for example:
a) Commercial invoice issued in the name of the buyer, in ____ copies.
b) Transport document (depending on the method of shipment specifically
c) Insurance policy / certificate (for shipments on CIF; CIP terms);
d) Other documents (a list of required certificates of quantity, quality, origin, etc., packing lists, specifications is given).
The list of documents can be given in the attachment (such an attachment is drawn up in 3 copies, the second copy is signed with two signatures and sealed, as well as an application for a letter of credit);
12. At whose expense the commission on the letter of credit is paid, and also specifies the special terms of payment under the contract;
13. Specified 21 days, unless otherwise specified in the contract;
14. Indicate the number of the account from which the cover under the letter of credit should be written off (for example: current balance account with currency cipher or current bank account);
15. Account number in column 14;
16. Name of the seller company, in favor of which the letter of credit is opened, with a detailed address in a foreign language;
17. The specific date of expiration of the letter of credit in accordance with the contract, for example, "December 21, 1996", the place of expiration is Moscow or the location of the advising bank;
18. The amount of the letter of credit in foreign currency, for example, “US dollars 663,000-00 (six hundred three thousand 00/100 US dollars)”;
19. The name of the bank that is authorized to make payments under the letter of credit: either the BANK or a foreign bank on the seller's territory and the column is filled in: “by / x / payment”, if, according to the terms of the contract, the payment is made against the documents.
Letter of credit. How to fill in correctly
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A letter of credit is a bank order document, on the basis of which the payer's bank transfers certain funds to the recipient's bank within one amount specified in the agreement.
Letter of credit form
Sample letter of credit
Unified forms and printed forms of documents for 2018 (more than two hundred forms)
- KKM and KKT documents
- Job instructions
- Business letters
- Materials accounting documents
- Forms and forms of powers of attorney
- the name of the beneficiary's bank and the payer's bank;
- Supplier name;
- the amount of the letter of credit;
- type of letter of credit - covered / uncovered, revocable / irrevocable;
- validity period of the letter of credit;
- terms of payment under the letter of credit - with or without acceptance;
- responsibility for the fulfillment of obligations;
other important points. - Indicate the number of the letter of credit and the date of its preparation;
- The payment amount is written in words (in words): from the beginning of the line with a capital letter, kopecks are indicated in numbers. The words "rubles" and "kopecks" are not abbreviated. In the field "Amount" in the right corner, the amount is indicated in numbers: rubles and kopecks are written with a hyphen.
- The data of the payer is indicated: TIN, if assigned, the payer's r / s number.
- Further, the name of the payer's bank, its BIC, bank account number.
- Below are the details of the beneficiary's bank, its BIC and credit card.
- Beneficiary's name, TIN, if assigned;
- Next, the type of letter of credit is written (revocable / irrevocable or covered / uncovered);
- Payment terms - with or without acceptance (prior agreement);
- Detailed information about the product, the number and date of the contract, the place of destination, the full name of the accompanying document for the product, additional conditions and the recipient's personal account number
- Trade and warehouse accounting
- Integration with fiscal registrars
- CRM, orders and transactions
- Printing of primary documents
- Bank and cash desk, mutual settlements
- Integration with delivery services
- Integration with IP telephony
- Email and SMS distribution
- KUDiR, tax return(USN)
Letters of credit are designed to facilitate mutual settlements between counterparties and provide them with the safety of transactions.
Letters of credit are divided into covered with(when the amount is transferred to the beneficiary's bank for the entire duration of the letter of credit) and uncovered(the beneficiary's bank is given the right to write off funds from the correspondent account opened with him within a certain amount), revocable(when the order can be changed or withdrawn by the bank at the initiative of the payer) and irrevocable(when the order can be revoked only if the recipient agrees).
The terms of settlements for letters of credit are prescribed in the agreement between the buyer and the payer.
In particular, the following must be indicated:
Instructions for filling out a letter of credit
Externally, the letter of credit form is almost identical payment order or a collection order, and is filled in like this:
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Application for an irrevocable letter of credit. Form No. 0401020039
Approved by the Resolution of the Board of the National Bank of March 29, 2001 N 67
Typical rules for filling out applications for a letter of credit
1. The field "Full name and legal address of the applicant" includes the full name and exact address of the client, on whose behalf and on the basis of whose instructions the issuing bank opens the letter of credit.
2. Field "Name of the issuing bank". For the convenience of the ordering client, this field is filled in in advance by the issuing bank itself (the application form is printed with the field filled in).
3. In the field “Letter of credit form” it is indicated whether the letter of credit should be opened by mail (with a possible preliminary advising by means of a TV transmission message) or by sending a TV transmission message. A TV transmission message is a valid letter of credit, unless otherwise specified in the text of the message.
Also, a mark is made in this field if the letter of credit to be opened must be transferable. Transferable letters of credit are governed by Article 38 of the Uniform Rules for Letters of Credit.
4. In the field "Date of expiry and place for submission of documents" in accordance with article 6 (d) of the Uniform Rules for Letters of Credit, the expiration date for submission of documents under a letter of credit for payment, acceptance or negotiation (accounting) shall be entered. This field also indicates the place, usually a city or country, where the letter of credit is being executed (where the documents must be submitted).
5. The “Confirmation of the Letter of Credit” field contains the instructions of the applicant on whether the letter of credit must be confirmed by the executing bank or another bank. A check in this field “at the request of the beneficiary” means that the issuing bank will instruct the nominated bank to advise the letter of credit to the beneficiary without adding its confirmation, but will authorize it to add confirmation if the beneficiary so requests.
6. The field "Full name and address of the beneficiary" is intended to indicate the party in whose favor the letter of credit is opened and which must fulfill all the conditions of the letter of credit in order to receive the amount specified in it. The applicant must indicate the full and exact name of the beneficiary, the full and exact postal address of the beneficiary, including the postal code, as well as telephone, fax, telex numbers, if known.
7. In the "Amount" field, indicate the amount of the letter of credit in figures and words, as well as the name of the currency in words and in accordance with the ISO code (USD, RUB, etc.).
An example of the correct indication of the currency and amount:
USD 600,000 (six hundred thousand US dollars).
The requester may include the word “approximately” in front of the amount of the letter of credit. In this case, in relation to the amount of the letter of credit, a deviation of 10% more or less will be allowed (Article 30 of the Uniform Rules for Letter of Credit).
8. The field "Executing bank" is intended to indicate the name of the executing bank or that the letter of credit is subject to execution in any bank. If the beneficiary did not inform the applicant of the name of the executing bank, after the text "Executing bank:" you should leave an empty space or write: "of your choice." If the nominated bank is a non-resident, its name is indicated, as a rule, on English language... If the name of such a bank in the language of its country is generally recognized in the international banking community and is used in reference databases, then such a name should be indicated.
9. In the "Letter of credit provides" field, a note is made about the method of making the issuing bank or the executing bank of the payment in favor of the beneficiary: by payment upon presentation of documents, payment with a delay of __ days, acceptance of drafts for a period of __ days or negotiation (accounting). The method of payment provided by the letter of credit should be negotiated between the applicant and the beneficiary in the main contract.
10. It is recommended that the "Partial Shipments" field be completed by the requester (ticked: Partial shipments are permitted or prohibited), although Article 31 (a) of the Uniform Rules for Letters of Credit specifies that partial shipments are permitted.
11. Before filling in the "Overload" field, the ordering party must determine the method of delivery of the goods to the consignee. The applicant is also advised to familiarize himself with Articles 19 to 24 of the Uniform Rules for Letters of Credit.
12. Information in the "Insurance is paid by us" field is required if the beneficiary is not required to submit insurance document(may be necessary for the issuing bank when deciding to open a letter of credit).
13. The field "Shipment. from. for transportation to. not later. »Includes details of shipment: place of departure and place of delivery of goods, which can be designated as city, port, airport, country, group of countries. Abbreviations and imprecise expressions such as "Baltic ports" etc. should not be used here.
In this field, after the text "no later than", the ordering party can indicate the last date of shipment.
14. The field "Type of goods and their quantity, price per unit of goods" is intended to describe goods, which should be accurate, but at the same time as short as possible. The description of goods must not contain data that cannot be confirmed by the documents submitted under the letter of credit.
The words “about”, “approximately”, “circa” (“about”, “approximately”) in relation to the quantity of goods and / or the price per unit of goods will mean that a deviation of 10 % up or down (article 30 of the Uniform Rules for Letters of Credit).
A deviation up or down by no more than 5% of the quantity of the goods is allowed, provided that the letter of credit does not indicate the quantity of goods in the form of a certain number of packaging units or individual items and that total amount payments does not exceed the amount of the letter of credit.
15. The field "Terms of delivery" is used to indicate necessary condition for the supply of goods, for example CIP Minsk. It is recommended to apply the terms of delivery defined in Incoterms 2010, publication ICC N 715 E:
EXW - Ex Works (. Named place of delivery) - Ex Works (place of shipment);
FCA - Free Carrier (. Named place of delivery) - Free carrier (place of shipment);
FAS - Free Alongside Ship (. Named port of shipment) - Free along the side of the ship (port of loading);
FOB - Free On Board (. Named port of shipment) - Free board of the vessel (port of loading);
CFR - Cost and Freight (. Named port of destination) - Cost and freight (destination port);
CIF - Cost, Insurance and Freight (. Named port of destination) - Cost, insurance and freight (port of destination);
CPT - Carriage Paid To (. Named place of destination) - Carriage paid to (destination);
CIP - Carriage and Insurance Paid to (. Named place of destination) - Carriage and insurance paid to (destination);
DAT - Delivered At Terminal (. Named terminal at port or place of destination) - Delivered to the terminal (port or place of delivery);
DAP - Delivered At Place (. Named place of destination) - Delivered at the destination (destination).
16. In the field “Documents required for submission” shall be indicated the documents against which the payment is made under the letter of credit. The applicant should only indicate such documents that the beneficiary can submit. The requester also determines how many originals and copies of each document he needs. The unified rules for letters of credit establish that if a transport document is issued in more than one original, then a complete set of originals is presented. When choosing the type of transport document, the ordering party should be based on the method of delivery of the goods (mode of transport). When granting the right to choose the method of delivery of the goods to the beneficiary, the applicant may use the word "or" when specifying transport documents, for example, a sea bill of lading or an air waybill. The requester need not indicate that the transport document must be “clean”, as Article 27 of the Uniform Rules for Letters of Credit, which defines a “clean” transport document, requires banks to accept the transport document if it is “clean”. If the carriage is carried out by several modes of transport, the ordering person should indicate in this field a document for multimodal transport (Multimodal Bill of Lading, etc.). When delivering cargo by air, it should be borne in mind that the IATA air waybill assumes only one of the three originals for the shipper (Original 3), therefore, you should not indicate more than one original air waybill in this field.
The insurance document is presented by the beneficiary when the delivery is made on a CIP or CIF basis. In all other cases, the applicant pays for the insurance himself, but may require the submission of any insurance-related document. The applicant may establish a fixed, minimum or minimum and maximum percentage of insurance coverage, otherwise Article 28 (f) ii of the Uniform Rules for Letters of Credit will apply. Pursuant to article 28 (f) ii of the Uniform Rules for Letters of Credit, if the amount of insurance coverage required is not specified in the letter of credit, the amount of insurance coverage must be at least one hundred and ten percent of the value of the goods on CIF delivery terms (CIP). If the value of the goods on the terms of delivery CIF (CIP) cannot be determined on the basis of documents, the amount of insurance coverage should be calculated based on the amount for which it is required to fulfill the obligation or negotiate, or from the total value of the goods indicated on the invoice, depending on whether which of these two amounts is greater. The applicant must determine what risks the insurance covers, while avoiding inaccurate terms such as "normal risks" or "standard risks", etc.
If the applicant wishes other documents to be presented than the commercial invoice, insurance and transport documents, he must indicate by whom such documents should be issued, as well as the wording and data that they should contain.
7. In the field “Documents must be submitted. »Specifies the period for submission of documents after the date of shipment. In the absence of such an indication in the letter of credit this period according to article 14 (c) of the Uniform Rules for Letters of Credit, it is automatically set to 21 days, provided that the original transport documents are presented under the letter of credit.
18. The field "Additional instructions" includes all the necessary additional instructions, as well as details of the payment of fees and an order to the issuing bank to write off funds under the letter of credit from the account (s) of the ordering party. If the cover under the letter of credit is provided to the issuing bank by another method specified in the agreement between the ordering party and the issuing bank, a reference to such agreement should be made in this field.
19. Application for a letter of credit drawn up legal entity on paper, must be signed and certified with the seal of the ordering party in accordance with the samples of signatures and seal imprints declared to the issuing bank.
An approximate application form for an irrevocable letter of credit is given, taking into account the requirements of the Unified Rules and Customs for documentary letters of credit N 600, adopted by the Commission on Banking Technology and Practice of the International Chamber of Commerce, as amended in 2007.
The standard rules for filling out applications for a letter of credit are given taking into account the requirements of the Unified Rules and Customs for documentary letters of credit N 600, adopted by the Commission on Banking Technology and Practice of the International Chamber of Commerce, as amended in 2007.
Letters of credit
Section structure
Letter of credit form of settlement both in rubles and in foreign currency can be very useful for enterprises that are expanding their trade - financial relations and start working with new partners. The letter of credit form of settlements insures the company against possible delays in payments for delivered products, as well as against non-receipt of raw materials (goods) for production in the event of prepayments already made.
A letter of credit is indispensable for large-value transactions, i.e. where the parties should have maximum guarantees for the performance of the contract. The bank assumes control over the timeliness and correctness of settlements.
Advantages of using the letter of credit form of settlements for the buyer (importer):
- payment is made only after the seller has fully fulfilled his obligations under the contract;
- a letter of credit avoids prepayment;
- a thorough check of all documents by the bank is guaranteed;
- legal protection is provided.
Advantages of using the letter of credit form of settlements for the seller (exporter):
Experience in carrying out such calculations, highly qualified specialists, an extensive correspondent network allow us to provide our clients with high quality services.
If all documents are available, the letter of credit is opened within 1 day.
Order to replace the days We issue an order to replace the vacation with monetary compensation (sample) Only a part exceeding 28 days is subject to replacement. When agreeing to replace the vacation days with monetary compensation, one must not forget that only additional or extended employee leave is subject to replacement. That is […]