Sample Document:
Letter of Credit (Documentary Credit)

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The sample letter of credit (L/C) below is a comprehensive case study of a Confirmed Irrevocable Letter of Credit opens by means of airmail.

For the explanations of the stipulations and fields in the L/C, please see Letter of Credit Particulars and Export Documentary Requirements. And, please consult the table of contents in different departments (Export, Shipping, Production, etc.) for other topics and discussions.


THE MOON BANK
 INTERNATIONAL OPERATIONS
5 MOONLIGHT BLVD.,
EXPORT-CITY AND POSTAL CODE
EXPORT-COUNTRY

 

OUR ADVICE NO.
      MB-5432

 
ISSUING BANK REF. NO. & DATE
SBRE-777     January 26, 2001   
                                                                                                                           
TO UVW Exports
88 Prosperity Street East, Suite 707
Export-City and Postal Code
Dear Sirs:
We have been requested by     The Sun Bank, Sunlight City, Import-Country
to advise that they have opened with us their     irrevocable           documentary credit number     SB-87654
for account of     DEF Imports, 7 Sunshine Street, Sunlight City, Import-Country
in your favor for the amount of     not exceeding Twenty Five Thousand U.S. Dollars (US$25,000.00)


 
available by your draft(s) drawn on     us
                                                      at     sight                                           for     full             invoice value

 
accompanied by the following documents:

 
1.   Signed commercial invoice in five (5) copies indicating the buyer's
Purchase Order No. DEF-101 dated January 10, 2001.

 
2.   Packing list in five (5) copies.

 
3.   Full set 3/3 clean on board ocean bill of lading, plus two (2) non-negotiable copies, issued to order of The Sun Bank, Sunlight City, Import-Country, notify the above accountee, marked "freight Prepaid", dated latest March 19, 2001, and showing documentary credit number.

 
4.   Insurance policy in duplicate for 110% CIF value covering Institute Cargo Clauses (A), Institute War and Strike Clauses, evidencing that claims are payable in Import-Country.



 
Covering:     100 Sets 'ABC' Brand Pneumatic Tools, 1/2" drive,
                complete with hose and quick couplings, CIF Sunny Port
Shipment from Moonbeam Port, Export-Country       to     Sunny Port, Import-Country
Partial shipment prohibited
Transhipment permitted

Special conditions:

 
1.   All documents indicating the Import License No. IP/123456 dated January 18, 2001.
2.   All charges outside the Import-Country are on beneficiary's account.
Documents must be presented for payment within     15               days after the date of shipment.
Draft(s) drawn under this credit must be marked

       Drawn under documentary credit No. SB-87654 of The Sun Bank,
      Sunlight City, Import-Country, dated January 26, 2001

 
We confirm this credit and hereby undertake that all drafts drawn under and in conformity with the
terms of this credit will be duly honored upon delivery of documents as specified, if presented at
this office on or before     March 26, 2001


 
  Very truly yours,

 
 
  Authorized Signature


Unless otherwise expressly stated, this Credit is subject to the Uniform Customs and Practice for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500.