The terms of the letter of credit, what are the main terms of the letter of credit

Proof issued by the beneficiary: fax a set of non-negotiable documents (documents) to the applicant (letter of credit) within 3 days of shipment.

It should be noted that the beneficiary of this requirement is generally unable to do it, because under normal circumstances, it is impossible to get the bill of lading within 3 days after shipment. However, in practice, as long as the beneficiary produces a certificate by himself, it is sufficient, so there is generally no need to ask the customer to change the certificate.

Just write a certificate and stamp it yourself.

Description of the letter of credit itself: number, type, applicant, beneficiary, redemption method and redemption bank, etc.

Description of goods: product name, unit price, quantity, packaging, etc.

Requirements for transportation: transportation routes, latest shipment times, whether batching is allowed, transshipment, etc.

Requirements for documents: invoices, packing lists, transport documents, insurance documents, etc.

Additional conditions. Interbank instructions or authorizations.

1. What is a letter of credit?

L/C refers to a written voucher issued by the bank to the exporter (seller) at the request of the importer (buyer) to guarantee the responsibility of paying the purchase price. In the L/C, the bank authorizes the exporter to issue a bill of exchange not exceeding the prescribed amount under the conditions specified in the L/C, with the bank or its designated bank as the payer, and to attach the shipping documents as required, and to collect the goods at the designated place on time.

In international activities, the buyer and the seller may not trust each other, and the buyer is worried that the seller will not deliver the goods according to the contract requirements after the advance payment; The seller is also concerned that the buyer will not pay after shipping the goods or submitting the shipping documents.

2. General procedures for payment of letters of credit.

1) The parties to the import and export shall clearly stipulate in the sales contract that payment shall be made by letter of credit.

2) The importer submits an application for issuance to the bank where it is located, fills in the application for issuance, and pays a certain deposit or provides other guarantees, and asks the bank (issuing bank) to issue a letter of credit to the exporter.

3) The issuing bank shall issue a letter of credit in favour of the exporter according to the content of the application, and notify the exporter of the L/C through its ** bank or correspondent bank (collectively referred to as the advising bank) in the exporter's location.

4) After the exporter ships the goods and obtains the shipping documents required by the L/C, he shall negotiate the payment to the bank where he is located (which can be the advising bank or other banks) according to the provisions of the L/C.

5) After the negotiating bank negotiates the payment, the negotiating amount shall be indicated on the back of the L/C.

Answer]: A, B, C, D

Test center guess and] letter of credit terms.

Analysis] The L/C shall include the following clauses: (1) the name and address of the issuing bank; (2) the date of issuance; (3) Letter of credit number; (4) Irrevocable and non-transferable letter of credit; (5) The name and address of the applicant; (6) Name and address of the beneficiary; (7) the name of the notification bank; (8) The validity period and validity of the letter of credit; (9) Submission period; (10) The amount of the letter of credit; (11) Payment Methods; (12) Conditions of Carriage; (13) Description of the goods; (14) Clauses of the document; (15) Miscellaneous; (16) The issuing bank's guarantee statement. Therefore, it is correct to use the hail to target the options.