Letter of Credit with Examples, LC examples, LC swift advice
In this lesson we are going
to discuss the LC Examples for difference incoterms.
LC swift advices are generally same all over the world. However, required
documents under LC documents (LC filed 46A) can depend based on the incoterm.
For more information for incoterms please visit our incoterms section.
Below all LC swift are actual
LCs and we have customized and remove the name of the beneficiary and applicant.
If you require full
understanding about Letter of Credit / LC process please visit our Letter
of Credit Flow chart/ LC flow chart / Letter of credit process / LC process
Now let’s look at How LC
swift vary according to the difference incoterms
:27:1/1
:40A:IRREVOCABLE
:20:ILC0001252125XX
:31C:201020
:40E:UCP LATEST VERSION
:31D:210106JAPAN
:50:ABC COMPANY LTD
P.O BOX 000, JAPAN XXX
:59:XYZ COMPANY LIMITED
XXXXX, USA
:32B:USD 250,000.00
:39A:00/00
:41A:BOTKJPJTXXX
BY NEGOTIATION
:42C:120 DAYS FROM BILL OF LADING DATE
:42A:UARBAEAAXXX
:43P:ALLOWED
:43T:ALLOWED
:44E:JAPAN/INDONESIA/THAILAND
:44F:ABU DHABI, UAE.
:44C:201216
:45A: TIRES
.
CFR – TOKYO, JAPAN
:46A:1. BENEFICIARY'S SIGNED COMMERCIAL
INVOICE(S) IN ORIGINAL PLUS 4
COPIES, ATTESTED BY CHAMBER OF COMMERCE,
ORIGINAL MUST BE
LEGALISED BY CONSULATE / OR LEGATION / OR
EMBASSY OF THE JAPAN, BEARING THE FOLLOWING CLAUSE(S). WE HEREBY CERTIFY
THAT:
(A) THIS INVOICE IS AUTHENTIC.
This is a computer generated advice and
does not require a signature
(B) IT IS THE ONLY INVOICE ISSUED BY US
FOR THE GOODS DESCRIBED
HEREIN.
(C) IT SHOWS THEIR EXACT VALUE WITHOUT
DEDUCTION OF ANY DISCOUNT.
(D) THEIR ORIGIN IS
JAPAN/INDONESIA/THAILAND.
2. FULL SET (3/3) OF 'SHIPPED ON BOARD'
OCEAN BILL(S) OF LADING
BEARING THIS DOCUMENTARY CREDIT NUMBER,
ISSUED TO ORDER OF UNITED
ARAB BANK, SHARJAH, UAE, SHOWING FREIGHT
PREPAID, NOTIFY ISSUING
BANK AND APPLICANT. THE BILL OF LADING
SHOULD ALSO SHOW THE DATE
ON WHICH GOODS WERE LOADED ON BOARD THE
CARRYING VESSEL AND THE
NAME, ADDRESS AND TELEPHONE NUMBER OF
CARRYING VESSEL'S AGENT AT
THE PORT OF DESTINATION AND / OR JAPAN.
3. INSURANCE ARRANGED BY APPLICANT.
SHIPMENTS UNDER THIS CREDIT
MUST BE ADVISED BY FAX BY THE BENEFICIARY,
WITHIN 5 DAYS AFTER
SHIPMENT DIRECT TO ABC INSURANCE GULF, PO
BOX 5862, DUBAI, UAE,
PH: 0097144476111, FAX: 0097144321590 AND
ON APPLICANT'S FAX NO.
0097126791541/6767708 REFERRING THEIR
POLICY NUMBER 23/MC/090599
GIVING FULL DETAILS OF SHIPMENT. A COPY
OF SUCH ADVICE ALONGWITH
A CERTIFICATE ISSUED BY BENEFICIARY IN
THIS EFFECT TO ACCOMPANY
EACH SET OF DOCUMENTS.
4. CERTIFICATE OF ORIGIN ISSUED IN
ENGLISH ONE ORIGINAL PLUS ONE
COPY STATING THAT THE GOODS ARE OF
JAPAN/INDONESIA/THAILAND
ORIGIN GIVING NAME AND ADDRESS OF
MANUFACTURER, DULY CERTIFIED /
ATTESTED BY A CHAMBER OF COMMERCE.
ORIGINAL CERTIFICATE OF
ORIGIN MUST BE LEGALIZED BY CONSULATE /
OR LEGATION / OR EMBASSY
OF THE JAPAN.
5. PACKING LIST IN ORIGINAL PLUS 3
COPIES.
6. CERTIFICATE ISSUED BY SHIPPING COMPANY
/ CARRIER OR THEIR
AGENT CERTIFYING THAT:
(A) THE CARRYING VESSEL IS A REGULAR LINE
VESSEL.
(B) THE AGE OF CARRYING VESSEL DOES NOT
EXCEED 15 YEARS AT TIME
OF LOADING.
(C) THE VESSEL IS PERMITED TO ENTER INTO
UAE PORTS ACCORDING TO
MARITIME LAWS AND REGULATION.
(D) THE OWNERS OR OPERATORS OF THE
CARRYING VESSEL, HOLD THE ISM
CODE DOCUMENT OF COMPLIANCE, CURRENT AT
THE TIME OF LOADING OF
THE CARGO.
(E) GOODS ARE SHIPPED ON SEAWORTHY
VESSELS, SUBJECT TO INSTITUTE
CLASSIFICATION CLAUSE APPLICABLE AS ON
01.01.2001.
:47A:1. ALL DOCUMENTS SHOULD BE DATED ON
OR AFTER THE DATE OF THIS
DOCUMENTARY CREDIT AND MUST BE ISSUED IN
ENGLISH LANGUAGE.
2. THE NUMBER, THE DATE OF THIS CREDIT
AND THE NAME OF OUR BANK
MUST BE QUOTED ON ALL DOCUMENTS.
3. ALL INVOICES MUST INDICATE THE
HARMONIZED SYSTEM CODE FOR THE
ITEMS SUPPLIED.
4. A DISCREPANCY FEE EQUIVALENT TO USD
150.00 OR EQUIVALENT WILL
BE DEDUCTED FROM THE PROCEEDS FOR EACH
SET OF DOCUMENTS PRESENTED
WITH DISCREPANCIES UNDER THIS DOCUMENTARY
CREDIT, IRRESPECTIVE OF
This is a computer generated advice and
does not require a signature
THE CONTENTS OF FIELD 71D.
5. IF DOCUMENTS ARE NEGOTIATED BY ANY
BANK OTHER THAN ADVISING
BANK, THE NEGOTIATING BANK MUST CONFIRM
ON THEIR COVERING
SCHEDULE THAT ALL CHARGES OF THE ADVISING
BANKS HAVE BEEN PAID.
6. IN ACCORDANCE WITH THE PROVISIONS OF
ARTICLE 16 C III B OF UCP
600, IF WE GIVE NOTICE OF REFUSAL OF
DOCUMENTS PRESENTED UNDER
THIS CREDIT WE SHALL HOWEVER RETAIN THE
RIGHT TO ACCEPT A WAIVER
OF DISCREPANCIES FROM THE APPLICANT AND,
SUBJECT TO SUCH WAIVER
BEING ACCEPTABLE TO US, TO RELEASE
DOCUMENTS AGAINST THAT WAIVER
WITHOUT REFERANCE TO THE PRESENTER
PROVIDED THAT NO WRITTEN
INSTRUCTIONS TO THE CONTRARY HAVE BEEN
RECEIVED BY US FROM THE
PRESENTER BEFORE THE RELEASE OF THE
DOCUMENTS. ANY SUCH RELEASE
PRIOR TO RECIEPT OF CONTRARY INSTRUCTIONS
SHALL NOT CONSTITUTE A
FAILURE ON OUR PART TO HOLD THE DOCUMENTS
AT THE PRESENTER'S RISK
AND DISPOSAL, AND WE WILL HAVE NO
LIABILITY TO THE PRESENTER IN
RESPECT OF ANY SUCH RELEASE.
7. UNITED ARAB BANK WILL NOT ACCEPT OR
HANDLE ANY TRANSACTIONS
THAT ARE IN BREACH OF ANY APPLICABLE
REGULATORY SANCTIONS.
8. THIRD PARTY DOCUMENTS ARE ACCEPTABLE
EXCEPT INVOICE AND DRAFT
9. CERTIFICATE OF ORIGIN NOT MANUALLY
SIGNED NOT SHOWING ISSUING
BANK AND LC NUMBER IS ACCEPTABLE.
10. NON LEGALIZED COMMERCIAL INVOICE AND
CERTIFICATE OF ORIGIN
ARE ACCEPTABLE FOR NEGOTIATION. WE WILL
DEDUCT LEGALIZATION FEES
FROM THE PROCEEDS AS PER BELOW
LEGALIZATION TARIF WITHOUT
REFERRING TO NEGOTIATING / PRESENTING
BANK:
FROM USD 1 TO USD 2,722.00 FEE: USD 41.00
FROM USD 2,722.01 TO USD 8,169.00 FEE:
USD 82.00
FROM USD 8,169.01 TO USD 16,338.00 FEE:
USD 164.00
FROM USD 16,338.01 TO USD 24,506.00 FEE:
USD 218.00
FROM USD 24,506.01 TO USD 40,844.00 FEE:
USD 273.00
FROM USD 40,844.01 TO USD 68,073.00 FEE:
USD 354.00
FROM USD 68,073.01 TO USD 136,147.00 FEE:
USD 409.00
FROM USD 136,147.01 TO USD 272,294.00
FEE: USD 545.00
FROM USD 272,294.01 TO USD 544,588.00
FEE: USD 817.00
AMOUNT GREATER THAN USD 544,588.00 FEE:
0.20 PERCENT OF INVOICE
VALUE PLUS USD 28.00 FLAT FOR EACH
CERTIFICATE OF ORIGIN.
11. PRESENTATION PERIOD FIELD 48:
DOCUMENTS TO BE PRESENTED
WITHIN THE VALIDITY OF THE CREDIT.
12. PLEASE BE INFORMED THAT FRIDAYAND
SATURDAY IS TO BE
CONSIDERED A NON-BANKING BUSINESS DAY FOR
OUR TRADE FINANCE
PROCESSING / OPERATIONS UNIT ALTHOUGH OUR
BANK MAY OTHERWISE BE
OPEN FOR BUSINESS. IF THE PAYMENT DUE
DATE FALL ON A
U.A.E./NY/EU/ OR ANY OTHER LOCAL HOLIDAYS
THE PAYMENT WILL
BEEFFECTED ON SUCCEEDING BANKING DAY.
13. BILLS OF LADING SHOWING CHARGES
ADDITIONAL TO THE FREIGHT
MENTIONED IN ARTICLE 26 (C ) OF THE UCP
FOR DOCUMENTARY CREDITS
2007 REVISION PUBLICATION NO. 600 ARE NOT
ACCEPTABLE EXCEPT WHERE
This is a computer generated advice and
does not require a signature
SUCH ADDITIONAL CHARGES ARE DEMURRAGE
FEES FOR CONTAINERS.
:71D:ALL BANK CHARGES ARE ON ACCOUNT OF
BENEFICIARY EXCEPT LC OPENING AND
ACCEPTANCE.
:49:WITHOUT
:78:UPON RECEIPT OF COMPLYING DOCUMENTS
WE SHALL REMIT THE PROCEEDS
AS PER YOUR INSTRUCTION ON MATURITY.
PRESENTING BANK TO DESPATCH
THE DOCUMENTS BY COURIER TO UNITED ARAB
BANK, HEAD OFFICE, 15TH
FLOOR TRADE FINANCE DEPARTMENT, UAB
TOWER, BUHEIRA CORNICHE
SHARJAH, U.A.E. TEL 009716 5733900 AND
FAX 009716 5733137 IN ONE
SET AT BENEFICARY'S COST.
:72Z:PLEASE ACKNOWLEDGE RECEIPT.
LC EXAMPLE - INCOTERM - DDP
:27:1/1
:40A:IRREVOCABLE
:20:XXXX2525242
:31C:210311
:40E:UCP LATEST VERSION
:31D:210629UNITED ARAB EMIRATES
:50:ABC COMPANY LIMITED
XXX, UAE
:59:XYZ CO. LTD
XXX U.A.E.
:32B:AED 1,000,000.00
:41A:NBFUAEAFDXB
BY ACCEPTANCE
:42C:60 DAYS FROM THE DATE OF DELIVERY
:42D:NBFUAEAFDXB
:43P:ALLOWED
:43T:NOT ALLOWED
:44C:210608
:45A:CONSUMBALES FOR QL4 SERVICE TOP OVERHAULING OF
PRICE TERMS: DDP APPLICANT'S IN U.A.E
*
DELIVERY/DESPATCH FROM BENEFICIARY'S WAREHOUSE IN ABU
DHABI,
U.A.E. TO APPLICANT'S WAREHOUSE IN DUBAI, U.A.E BY
ROAD.
:46A:1.SIGNED COMMERCIAL INVOICE(S) AND ONE COPY
MENTIONING
FULL NAME AND ADDRESS OF THE MANUFACTURER(S) OR
PRODUCER(S).
*
2.SIGNED DELIVERY NOTE SHOWING THE DATE OF DELIVERY,
COUNTERSIGNED AND DATED BY APPLICANT'S REPRESENTATIVE MR.
VANTHYA DEVAN, (MANAGER - TESTING AND COMMISSIONING)
CONFIRMING
RECEIPT OF GOODS IN GOOD ORDER AND CONDITION AT APPLICANT'S
WAREHOUSE IN MUSAFFAH, ABU DHABI, U.A.E.
:47A:1.UNLESS OTHERWISE SPECIFIED HEREIN, ALL DOCUMENTS
MUST BE
ISSUED IN THE ENGLISH LANGUAGE.
2.UNLESS OTHERWISE SPECIFIED HEREIN, THIS DOCUMENTARY
CREDIT
NUMBER MUST APPEAR ON ALL DOCUMENTS.
3.UNLESS OTHERWISE SPECIFIED HEREIN, DOCUMENTS ISSUED
PRIOR TO
THE DATE OF THIS DOCUMENTARY CREDIT ARE NOT ACCEPTABLE.
4.UNLESS OTHERWISE SPECIFIED HEREIN, COMMERCIAL INVOICE(S)
AND
DELIVERY NOTE MUST SHOW THE SHIPPING MARKS, (IF ANY,
MENTIONED
UNDER THIS DOCUMENTARY CREDIT).
5.THE SPECIMEN SIGNATURE OF MR. VANTHYA DEVAN AS DETAILED
UNDER
DOCUMENTS REQUIRED (FIELD 46A) CLAUSE NO.2 SHALL BE
FORWARDED
SEPARATELY BY THE ISSUING BANK THROUGH THE ADVISING BANK
FOR
ONWARD DELIVERY TO THE BENEFICIARY. THIS SHALL FORM AN INTEGRAL
PART OF THIS CREDIT. WE CONFIRM ISSUANCE AND AUTHENTICIY
OF THE
LETTER FORWARDED TO THE ADVISING BANK VIDE EMPOST COURIER.
6.COMMERCIAL INVOICE MUST INDICATE ORIGIN OF GOODS AS
U.A.E.
7.THE WORD 'SHIPMENT' STIPULATED UNDER THIS CREDIT TO BE
READ AS
'DELIVERY'.
8.DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS FROM THE DATE
OF
DELIVERY BUT WITHIN THE VALIDITY OF THIS DOCUMENTARY
CREDIT.
*
INSTRUCTIONS TO THE ADVISING/NEGOTIATING BANK/PRESENTER:
1.PAYMENT WILL BE EFFECTED BY US ON MATURITY PROVIDED THE
DOCUMENTS PRESENTED TO US ARE IN CONFORMITY WITH THE TERMS
AND
CONDITIONS OF THIS DOCUMENTARY CREDIT.
2.DETAILS OF ALL NEGOTIATIONS UNDER THIS DOCUMENTARY
CREDIT MUST
BE RECORDED ON THE REVERSE OF THIS DOCUMENTARY CREDIT.
3.WE SHALL ADVISE THE PRESENTER OF ANY DISCREPANCIES
OBSERVED IN
THE DOCUMENTS WHICH WILL BE HELD AT THE RISK AND DISPOSAL
OF THE
PRESENTER OR UNTIL WE RECEIVE A WAIVER FROM THE APPLICANT
AND WE
AGREE TO ACCEPT IT.
IN THE EVENT DISCREPANCIES ARE ACCEPTED BY THE APPLICANT,
WE
RESERVE THE RIGHT TO DELIVER THE DOCUMENTS AGAINST
PAYMENT/
ACCEPTANCE, UNLESS WE ARE INSTRUCTED TO THE CONTRARY BY
THE
PRESENTER PRIOR TO RECEIVING APPLICANT'S ACCEPTANCE OF THE
DISCREPANCIES AND OUR AGREEMENT TO ACCEPT THE WAIVER.
4.FOR EACH NEGOTIATION, DOCUMENTS ARE TO BE DESPATCHED BY
COURIER IN ONE LOT TO THE FOLLOWING ADDRESS:
NATIONAL BANK OF FUJAIRAH P.J.S.C.
CENTRALISED TRADE SERVICES UNIT
POST BOX 2979
FUJAIRAH BUILDING
KHALID BIN WALEED STREET
DUBAI, UNITED ARAB EMIRATES
PHONE: (+971 4 3971700) FASCIMILE: (+971 4 3979100).
5.IF THE DOCUMENTS ARE NEGOTIATED BY A BANK OTHER THAN THE
ADVISING BANK, THE NEGOTIATING BANK AGREES TO REIMBURSE US
ON
FIRST DEMAND ANY UNPAID CHARGES OF THE ADVISING BANK.
6.BENEFICIARY WILL BE CHARGED A MINIMUM OF USD100.00 (OR
EQUIVALENT) PLUS COMMUNICATION CHARGES IF DISCREPANT
DOCUMENTS
ARE PRESENTED.
7.PLEASE BE INFORMED THAT SATURDAY IS TO BE CONSIDERED A
NON-
BANKING DAY FOR NBF TRADE SERVICES DEPARTMENT, ALTHOUGH
OUR BANK
MAY OTHERWISE BE OPEN FOR BUSINESS.
*
WE HEREBY ENGAGE WITH DRAWERS AND/OR BONAFIDE HOLDERS THAT
DRAFTS DRAWN AND NEGOTIATED IN CONFORMITY WITH THE TERMS
OF THIS
DOCUMENTARY CREDIT WILL BE HONOURED ON PRESENTATION.
*
THIS DOCUMENTARY CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS
AND
PRACTICE FOR DOCUMENTARY CREDITS (2007 REVISION) OF THE
INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 600, OR
ANY
SUBSEQUENT REVISION THEREOF.
:71D:BENEFICIARY'S BANK CHARGES ARE FOR
ACCOUNT OF BENEFICIARY AND
APPLICANT'S BANK
CHARGES ARE FOR
THE ACCOUNT OF APPLICANT.
:49:WITHOUT
:57D:MASHREQ BANK
-}{5:{MAC:00000000}{CHK:94102EFC1BC1}}{S:{SAC:}{COP:S}}
+ WE ARE ENCLOSING
HEREWITH ORIGINAL LETTER OF CREDIT.KINDLY PRESENT
THIS CREDIT WITH
THE DOCUMENTS WHEN SUBMITTING FOR NEGOTIATION.
+ THIS LC IS ONLY
ADVICE TO OUR CORRESPONDENT'S LETTER OF CREDIT
AND
CONVEYS NO
ENGAGEMENT OR RESPONSIBILITY ON OUR PART TO NEGOTIATE
THE DOCUMENTS.
+ WHILE SUBMITTING
THE DOCUMENTS, PLEASE PRESENT ONE COPY/PHOTOCOPY OF
EACH DOCUMENTS
FOR OUR FILE. IN CASE COPIES ARE NOT ATTACHED WE WILL
BE CHARGING THE
AMOUNT OF USD 10.00 OR EQUIVALENT THEREOFF.
+ PLEASE EXAMINE
THIS INSTRUMENT CAREFULLY. IF YOU ARE
UNABLE TO COMPLY
WITH THE TERMS
OR CONDITIONS, PLEASE COMMUNICATE WITH YOUR BUYER TO
ARRANGE FOR AN
AMENDMENT. THIS PROCEDURE WILL FACILITATE PROMPT
HANDLING
WHEN DOCUMENTS ARE PRESENTED.
+ ALL PARTIES TO
THIS DOCUMENTARY CREDIT ARE ADVISED THAT SPECIFIC
SANCTIONS/EMBARGOS ARE IMPOSED BY REGULATORY AUTHORITIES / AGENCIES
(INCLUDING THE
USA, UK, EU, UN) AGAINST CERTAIN COUNTRIES, ENTITIES,
INDIVIDUALS,
VESSELS,GOODS UNDER THESE MEASURES, MASHREQ MAY NOT BE ABLE
TO ENGAGE IN THE
TRANSACTION (ACCEPT OR NEGOTIATE ANY DOCUMENTS OR SETTLE
ANY
TRANSACTIONS) THAT IN ITS OPINION WOULD BREACH APPLICABLE SANCTIONS.
+ THIS ADVICE IS
SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICES FOR DOCUMENTARY
CREDITS(2007
REVISION) INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO 600.
(THIS IS COMPUTER GENERATED ADVICE. NO SIGNATURE REQUIRED)
LC EXAMPLE - INCOTERM - EXW
:27:1/1
:40A:IRREVOCABLE
:20:DDH15252152
:31C:201202
:40E:UCP LATEST VERSION
:31D:210530UAE
:50:ABC COMPANY LTD
XXX, UAE
:59:XYZ COMPANY LIMITED
XXXX, SHAJAH, UAE
:32B:EUR 15,000,000
:41D:MASHREQBANK PSC
MAIN BRANCH ABU DHABI
MAIN BRANCH, PO BOX 858
ABU DHABI
BY ACCEPTANCE
:42C:REFER PAYMENT TERMS
:42D:REFER TO ADDITIONAL CONDITIONS
:43P:ALLOWED
:43T:NOT ALLOWED
:44A:BENEFICIARYS WAREHOUSE IN GERMAN
:44E:ANY PORT IN GERMANY
:44F:SHARJAH PORT, UAE
:44C:210418
:45A:EXW BENEFICIARYS WAREHOUSE IN
GERMANY
COMPLETE SUPPLY COMPRESSOR AS PER
APPLICANTS ORDER
:46A:1.MILESTONE PAYMENT THROUGH L/C WITH
SPLIT
PAYMENTS
AS
STATED BELOW FOR THE ENGINEERING, SUPPLY
AND DELIVERY
OF
MATERIALS.
A) AMOUNT NOT EXCEEDING EUR 15,000,000.00
ON SUBMISSION
OF
THE
ENGINEERING DOCUMENTS FOR CLIENT APPROVAL
IS PAYABLE
AT 30
DAYS
FROM THE DATE OF DOCUMENT RELEASE NOTE,
AGAINST
PRESENTATION
OF:
1.ORIGINAL COMMERCIAL INVOICE
2.DOCUMENT RELEASE NOTE, ISSUED AND
SIGNED BY
APPLICANT'S
AUTHORIZED REPRESENTATIVE MR. XXXXX
(SPECIMEN SIGNATURES AS PER ATTACHED
EXHIBIT
A)
3.A WRITTEN ADVICE SIGNED BY THE
APPLICANTS
AUTHORIZED
REPRESENTATIVE MR. XXX
(SPECIMEN
SIGNATURES AS PER ATTACHED EXHIBIT A)
CONFIRMING
RECEIPT
AND
ACCEPTANCE OF AN IRREVOCABLE
UNCONDITIONAL PERFORMANCE
BANK
GUARANTEE FROM THE BENEFICIARY.
B) AMOUNT NOT EXCEEDING EUR 1,000,000 ON
CLIENT
APPROVAL OF
THE
SUB ORDERS IS PAYABLE AT 60 DAYS FROM THE
DATE OF SUB
ORDERS
RELEASE NOTE AGAINST PRESENTATION OF :
1.ORIGINAL COMMERCIAL INVOICE
2.SUB ORDERS RELEASE NOTE , ISSUED AND
SIGNED BY
APPLICANT'S
AUTHORIZED REPRESENTATIVE (SPECIMEN
SIGNATURES AS PER ATTACHED
EXHIBIT
A).
:47A:1.ALL DOCUMENTS MUST BE ISSUED IN
ENGLISH
LANGUAGE.
2.SHOULD THE NEGOTIATING BANK FOR WHATEVER
REASON,
DECIDE
TO
NEGOTIATE ANY BILL DRAWN UNDER THIS
CREDIT UNDER
RESERVE
OR
AGAINST AN INDEMNITY, ALL DISCREPANCIES
MUST BE
ADVISED BY
THE
SWIFT TO THE OPENING BANK FOR THEIR
ACCEPTANCE.
3.A SUM OF AED 500.00 BEING DISCREPANCY
FEES PLUS AED
100.00
PER
SWIFT (OR EQUIVALENT OF USD 165.00 IN
TOTAL) WILL BE
DEDUCTED
FROM THE PROCEEDS OF EACH PRESENTATION OF
DISCREPANT
DOCUMENTS
UNDER THIS DC. NOTWITHSTANDING ANY
INSTRUCTIONS TO THE
CONTRARY,
THIS CHARGE IS FOR THE ACCOUNT OF THE
BENEFICIARY,
EVEN IF
SOME
OR ALL CHARGES ARE FOR THE ACCOUNT OF THE
APPLICANT.
4.IN ACCORDANCE WITH THE PROVISIONS OF
ARTICLE 16 C
III B
OF
UCP600,IF WE GIVE NOTICE OF REFUSAL OF
DOCUMENTS
PRESENTED
UNDER
THIS CREDIT WE SHALL HOWEVER RETAIN THE
RIGHT TO
ACCEPT A
WAIVER
OF DISCREPANCIES FROM THE APPLICANT AND,
SUBJECT TO
SUCH
WAIVER
BEING ACCEPTABLE TO US, TO RELEASE
DOCUMENTS AGAINST
THAT
WAIVER
WITHOUT REFERENCE TO THE PRESENTER
PROVIDED THAT NO
WRITTEN
INSTRUCTIONS TO THE CONTRARY HAVE BEEN
RECEIVED BY US
FROM
THE
PRESENTER BEFORE THE RELEASE OF THE
DOCUMENTS. ANY
SUCH
RELEASE
PRIOR TO RECEIPT OF CONTRARY INSTRUCTIONS
SHALL NOT
CONSTITUTE A
FAILURE ON OUR PART TO HOLD THE DO
CUMENTS AT THE PRESENTER'S RISK
AND DISPOSAL, AND WE WILL HAVE NO
LIABILITY TO THE
PRESENTER
IN
RESPECT OF ANY SUCH RELEASE.
5.PERIOD OF PRESENTATION: WITHIN 21 DAYS
AFTER THE
DATE
OF
SHIPMENT BUT WITHIN THE VALIDITY OF THE
CREDIT.
6.DELAY PENALTY: PAYMENT UNDER THIS LC IS
SUBJECT TO
DEDUCTION
OF DELAY PENALTY AT ONE PERCENT OF THE
DELAYED PORTION
OF
GOODS FOR EACH COMPLETED WEEK OF DELAY,
UPTO A MAXIMUM
OF
SEVEN
PERCENT OF THE INVOICE VALUE, IN CASE OF
SHIPMENT
BEYOND
THE
LAST SHIPMENT DATE OF 19TH APRIL, 2021.
7.CONSIGNEE'S NAME AND ADDRESS ON ALL
SHIPPING
DOCUMENTS
SHALL
BE AS PER BELOW
XXX COMPANY.LTD
8.DRAFTS MUST BE DRAWN ON
ACCEPTING/NOMINATED
BANK.(THIS
CLAUSE
OVERRIDES FIELD 42D OF THIS DC).
9.THIRD PARTY SHIPPING DOCUMENTS ISSUED
BY THE
MANUFACTURER
XYZ COMPANY LIMITED
IS ACCEPTABLE UNDER THIS LC, EXCEPT DRAFT
AND PAYMENT
INVOICE,
10.DETAILS OF CHARGES: APPLICANT'S BANK
CHARGES ON
APPLICANT'S
ACCOUNT AND BENEFICIARY'S BANK CHARGES ON
BENEFICIARY
ACCOUNT.
11.THE ORIGINAL INVOICE AND THE ORIGINAL
CERTIFICATE
OF
ORIGIN
MUST BE DULY ATTESTED OR LEGALISED BY THE
UAE EMBASSY
OR
CONSULATE IN THE BENEFICIARY'S COUNTRY OR
IN ITS
ABSENCE BY
THE
NEAREST UAE EMBASSY/CONSULATE.
PRESENTATION OF DOCUMENTS WITHOUT
LEGALISATION BY UAE
EMBASSY
OR
CONSULATE IS ACCEPTABLE PROVIDED EACH
INVOICE SHOWS A
DEDUCTION
IN LINE WITH THE LOCAL GOVERNMENT
REGULATIONS ON GROSS
INVOICE
VALUE AS PER THE FOLLOWING SCHEDULE:
RANGES FROM (USD) TO (USD) FEES IN (USD)
OR EQUIVALENT OR EQUIVALENT OR EQUIVALENT
1 2,723 41
2,724 8,169 82
8,170 16,338 163
16,339 24,507 218
24,508 40,845 272
40,846
68,074 354
68,075 136,148 408
136,149 272,296 545
272,297 544,603 817
544,604 AND OVER 0.2 PERCENT OF EACH
INVOICE VALUE
PLUS (USD28/- OR EQUIVALENT) FLAT FOR
CERTIFICATE OF
ORIGIN
NOT
LEGALISED.
:49:WITHOUT
:78:1. ON RECEIPT OF ORIGINAL DOCUMENTS
CONFORMING TO
THE
TERMS OF
THIS DOCUMENTARY CREDIT WE SHALL
UNDERTAKE TO
REIMBURSE YOU
IN
THE CURRENCY OF THIS DC AS PER YOUR
INSTRUCTIONS AT
MATURITY
.
2. THE AMOUNT OF EACH NEGOTIATION MUST BE
ENDORSED ON
THE
REVERSE
OF THIS CREDIT AND THE NEGOTIATING BANK'S
COVERING
SCHEDULE
TO
CERTIFY THE SAME.
:72Z:DOCUMENTS MUST BE DISPATCHED BY
COURIER IN ONE COVER TO HSBC BANK
MIDDLE EAST LTD, CENTRALIZED TRADE
SERVICES DEPT-TSC, P.O.BOX 66,
DUBAI. UAE ON THE SAME DAY
OF
NEGOTIATION.
LC EXAMPLE - SBLC SWIFT
27 :Sequence of Total
1/1
40A:Form of Documentary Credit
IRREVOCABLE STANDBY
20 :Documentary Credit Number
XXXXXXXX
31C:Date of Issue
190625
40E:Applicable Rules
UCP LATEST VERSION
31D:Date and Place of Expiry
200615UAE
50 :Applicant
ABC COMPANY LTD
XXXX,XXXX
59 :Beneficiary Customer
XYZ COMPANY LTD
XXXX
XXX
32B:Currency Code ,Amount
Currency:USD (US DOLLAR)
Amount :#10,000,000.#
41A:Available With...By...
SCBLAEAD
BY PAYMENT
43P:Partial Shipments
ALLOWED
46A:Documents Required
+WE (ABU DHABI COMMERCIAL BANK, TRADE
FINANCE SERVICES, DUBAI,
U.A.E.) (THE ''ISSUING BANK''),
HEREBY ESTABLISH OUR IRREVOCABLE
STANDBY LETTER OF
CREDIT NO.XXXXX (THE ''CREDIT'') DATED 25/06/2019 IN
FAVOUR OF
XYZ COMPANY LTS, XXXXX, (THE
''BENEFICIARY'') ON BEHALF OF ABC COMPANY LTD,XXX,XX
(THE ''APPLICANT'') FOR THE AGGREGATE
AMOUNT OF USD10,000,000
(UNITED STATES DOLLARS TEN MILLION).
.
THIS STANDBY CREDIT IS AVAILABLE WITH
SCBLAEAA AGAINST THE
PRESENTATION OF THE
FOLLOWING DOCUMENTS FOR PAYMENT UNDER
THIS STANDBY LETTER OF
CREDIT COVERING SUPPLY ELECTRIC SPARE
PARTS
+1. BENEFICIARY'S ORIGINAL SIGNED AND
STAMPED STATEMENT ISSUED ON
THEIR LETTER HEAD AND SIGNATURES TO
BE VERIFIED BY THEIR BANKERS,
STATING AS FOLLOWS:
'WE CERTIFY THAT THE APPLICANT HAVE
NOT MADE FULL PAYMENT OF
INVOICES FOR THE SUPPLY OF NISSAN
SPARE PARTS ELECTRIC SPARE PARTS
ORDERED BY THE APPLICANT TO BE
SHIPPED FROM USA DELIVERY FROM UAE TO
ABU
DHABI STATING THE INVOICE NO, DATE
AND AMOUNT UNPAID'
+2. SIGNED COPY OF THE UNPAID
COMMECIAL INVOICES COVERING
SHIPMENT OF THE ABOVE GOODS, SHOWING
THE ORIGIN OF GOODS
+3. COPY OF RELAVANT ORIGINAL BILLS
OF LADING/ AIR WAY BILLS AND
DELIVERY NOTE CLEARLY SHOWING DATE OF
SHIPMENT/ DESPATCH/DELIVERY
47A:Additional Conditions
+1) ALL DOCUMENTS TO BE ISSUED IN
ENGLISH LANGUAGE.
.
2) ALL DOCUMENTS CALLED FOR IN THIS
CREDIT SHOULD BE DATED AND
ANY DOCUMENTS DATED PRIOR TO STANDBY
LC ISSUANCE DATE NOT
ACCEPTABLE.
.
3) PARTIAL SHIPMENT AND PARTIAL
DRAWINGS PERMITTED.
.
4) THE AMOUNT AVAILABLE FOR DRAWING
UNDER THIS LETTER OF CREDIT
WILL BE REDUCED BY THE AMOUNT PAID
UNDER THE LETTER OF CREDIT,
.
5) THIS STANDBY LC IS NOT
TRANSFERABLE OR NOT ASSIGNABLE WITHOUT
THE CONSENT OF THE ISSUING BANK
.
6) YOU ACKNOWLEDGE THAT AS A BANK
WHICH OPERATES, AND WHOSE
CLIENTS OPERATE, INTERNATIONALLY ABU
DHABI COMMERCIAL BANK
(ADCB) IS OR MAY BE REQUIRED TO
COMPLY WITH LAWS AND REGULATIONS
ISSUED AND MADE IN MULTIPLE
JURISDICTIONS, INCLUDING WITHOUT
LIMITATION JURISDICTIONS IN WHICH
ADCB OR ITS CLIENTS OPERATE
AND JURISDICTIONS THROUGH WHOSE
FINANCIAL SYSTEMS ADCB OR ITS
CORRESPONDENTS ROUTE PAYMENTS. SUCH
JURISDICTIONS INCLUDE,
WITHOUT LIMITATION, THE UNITED ARAB
EMIRATES, THE EUROPEAN
UNION, THE UNITED KINGDOM, THE UNITED
NATION AND THE UNITED
STATES OF AMERICA. SUCH LAWS, AND
REGULATIONS (TOGETHER THE
'REGULATIONS') MAY INCLUDE WITHOUT
LIMITATION EMBARGOES,
SANCTIONS AND EXPORT CONTROLS AGAINST
COUNTRIES, STATES,
ENTITIES, VESSELS, PORTS OR
INDIVIDUALS.
.
IT IS A CONDITION OF THIS DOCUMENTARY
CREDIT THAT DRAWINGS OR
PAYMENTS WHICH RENDERS OR COULD
RENDER ADCB OR ANY OTHER PARTY
TO THE TRANSACTION IN BREACH OF ANY
REGULATIONS WILL NOT BE
PROCESSED AND RELEVANT DOCUMENTATION
WILL BE IMMEDIATELY
RETURNED TO THE PRESENTER OR REJECTED
TO ADCB'S COMPLETE
DISCHARGE AND WITHOUT ANY LIABILITY
ON ADCB. THIS INCLUDES
EVIDENCE OF SHIPMENT ON ANY VESSEL OR
TRANSSHIPMENT THROUGH ANY
COUNTRY, PLACE OR STATE WHICH MAY BE
AFFECTED BY A BOYCOTT,
EMBARGO OR SANCTION AT ANY TIME
.
+ EXCEPT AS OTHERWISE EXPRESSLY
STATED HEREIN, THIS LETTER OF
CREDIT IS SUBJECT TO THE UNIFORM
CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS. (2007 REVISION)
INTERNATIONAL CHAMBER OF
CONTD. FIELD 78
6.PLEASE BE INFORMED THAT FRIDAY IS
TO BE CONSIDERED A NONBANKING
BUSINESS DAY IN UAE. IF THE PAYMENT
DUE DATE FALLS ON A
UAE / NY / EU OR ANY OTHER LOCAL
HOLIDAY THE PAYMENT WILL BE
EFFECTED ON THE SUCCEEDING BANKING
DAY.
71D:Charges
ALL BANK CHARGES UNDER THIS SBLC
ARE ON APPLICANT'S A/C
48 :Period for Presentation in
Days
0/WITHIN THE VALIDITY OF THE CREDIT
49 :Confirmation Instructions
WITHOUT
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