GUIDELINES FOR REQUESTING LETTERS OF CREDIT by sparrowjacc

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									                                 GUIDELINES FOR REQUESTING LETTERS OF CREDIT
                                         (to be transcribed onto letterhead of Seller/Beneficiary)

The verbiage below are merely suggestions. It is the customer’s sole decision to use it or not. Further, it should not be
construed as a promise or agreement to handle a transaction. Accordingly, Union Bank of California, N.A. is to be held
harmless against all liabilities incurred in connection with the use of this language.




                                        (Letterhead of Seller/Beneficiary)

     TO: (Name of Buyer)
     Please arrange through your banker to provide us with an irrevocable commercial letter of credit with the
     following terms and conditions:

     ISSUANCE:             Please ensure that the letter of credit is received by us ___days before our agreed
                           upon shipment date.
                                                                                                                       Note: Letters of credit should
     BENEFICIARY:          (Beneficiary’s Complete Name)                                                               normally be advised through
                           (Address)
                                                                                                                       your bank’s central
                           (Telephone & Telefax Numbers)
                                                                                                                       international processing
     ADVISING BANK:        Union Bank of California                                                                    center as illustrated here
                           Trade Services Operations                                                                   (unnecessary delays may
                           1980 Saturn Street                                                                          occur if you request the letter
                           Monterey Park, CA 91755-7417
                                                                                                                       of credit to be advised
                           USA
                                                                                                                       through your local bank
                           Telex: 18812 UNION BK/4999030 UNION BK                                                      branch).
                           SWIFT: BOFC US 33 LAX
                           CABLE: UNION BANK LOS ANGELES

     CONFIRMATION BY
     A U.S. BANK:    ¨Not Required
                     ¨The letter of credit must be confirmed by a major United States bank, preferably
                      Union Bank of California, and not a U.S. branch or agency of the issuing bank.

     LETTER OF CREDIT
     EXPIRATION DATE:
                                                                                                                       Note: Confirmation fees are
                                                                                                                       most often paid by the
     LATEST SHIPMENT                                                                                                   beneficiary.
     DATE:

     PRESENTATION:         Documents to be presented within ____ days from shipping date but
                           within the validity of the letter of credit (generally 21 days for ocean; 15 days by air)

     CURRENCY/AMOUNT:

     SHIPPING TERM:        ¨FOB (Free on Board place of loading - vessel/aircraft)
                           ¨CIF (Cost, Insurance, and Freight)
                           ¨CFR (Cost and Freight)
                           ¨Other

     PAYMENT TERM:         ¨Sight Letter of Credit
                           ¨Usance (Time) Letter of Credit
                           ¨Draft drawn ___days after sight
                           ¨Draft drawn ___days after bill of lading/air waybill date
                           ¨Draft to mature___________ (fixed date draft)

     DOCUMENTS                                                                                                         Note: The options shown
     REQUIRED: Other than for normal import documentation which you may require (i.e., commercial invoice,
                                                                                                                       generally provide greater
               packing list, etc.), the letter of credit must call for the following transport document(s):
                                                                                                                       control to the exporter over
                           ¨For ocean shipments, a full set of clean on-board ocean bills of lading.                   the merchandise until
                           ¨For air shipments, the airway bill must show merchandise consigned to issuing              payment is authorized.
                            bank.




FORM 05926 (01/2003)
                    GUIDELINES FOR REQUESTING LETTERS OF CREDIT (continued)
                                     (to be transcribed onto letterhead of Seller/Beneficiary)

The verbiage below are merely suggestions. It is the customer’s sole decision to use it or not. Further, it should not be
construed as a promise or agreement to handle a transaction. Accordingly, Union Bank of California, N.A. is to be held
harmless against all liabilities incurred in connection with the use of this language.




   INSURANCE
   COVERED BY:          ¨Buyer ¨Seller (in which case an insurance certificate/policy is required)

   COVERING                                                                                                  A simple, brief description of
   SHIPMENTS OF:                                                                                             merchandise is preferable.
                        as per Purchase Order Number/Contract:

   SHIPMENT FROM:                                                                           (Port/Airport)

   SHIPMENT TO:                                                                             (Port/Airport)

   PARTIAL SHIPMENT:        ¨Permitted                      ¨Prohibited

   TRANSSHIPMENT:           ¨Permitted                      ¨Prohibited

   CHARGES:
      GENERAL:
          All banking charges in the USA are for account of:           ¨Buyer     ¨Seller

             All banking charges outside the USA are for account of:   ¨Buyer     ¨Seller

   TIME (USANCE) LETTERS OF CREDIT:
       Discount charges are for the account of:                        ¨Buyer     ¨Seller                    Payment of these charges is
                                                                                                             negotiable between the
        Acceptance commission is for the account of:                   ¨Buyer     ¨Seller                    buyer and seller.

   REIMBURSEMENT
   INSTRUCTIONS:        Please communicate the following reimbursement requirement to the
                        letter of credit issuing bank:

                        “Reimbursements should preferably be on your bank’s account at Union
                        Bank of California or, if not possible, at a bank located in the State of
                        California and authority must be given to Union Bank of California to
                        claim reimbursement by cable.”


   PLEASE NOTE
   CAREFULLY:           If you are unable to meet any terms and conditions, please contact us as soon
                        as possible, and PRIOR to having the credit issued. Any deviation from the above
                        terms and conditions without our agreement may result in additional bank charges,
                        and a delay in the shipment until the credit can be amended.

								
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