Letter of credit(LetterofCredit, L/C) refers to a written guarantee issued by the issuing bank to the beneficiary at the request of the applicant (buyer) in accordance with its instructions for a certain amount of money to be paid by qualified documents within a certain period of time。In international trade, letter of credit is one of the most important and commonly used payment methods。
So, what are the most commonly used documents for letters of credit？
One is commercial invoice
There is no uniform format for commercial invoices, but they usually have the following contents: invoice name, consignor, customer, invoice number, invoice date, port of shipment, port of destination, mark, commodity name, quantity, unit price, total amount, price term, invoice stamp, etc。
The contents of the description of the goods in L/C 45A shall be shown on the commercial invoice one by one。
The second is the packing list
The packing list supplements the commercial invoice。Name, specification, quantity, marking, case number, number of parts, weight and volume of the goods and packing。
If the credit has special requirements for the packing list, these must be reflected in the packing list。
The third is the weight list
Weight is a proof of the weight of the goods, usually issued by the exporter or manufacturer。
Change the head PACKINGLIST of a packing list to WEIGHTLIST, and a weight list is ready。
Fourth, the ocean bill of lading
A bill of lading is a legally binding document issued by the carrier or its agent in a mode of carriage by sea, confirming the arrival of the goods (or that they have been loaded on board), and promising to deliver the goods to the named place and to the holder of the bill of lading。
If the credit has special requirements on the bill of lading, it must be reflected on the bill of lading。The commodity name on the bill of lading should not only comply with the provisions of the letter of credit, but also be consistent with the commercial invoice and other documents。
Fifth, insurance documents
Insurance policy is the content form designed in advance by the insurance company according to the type of insurance, and the insurance applicant fills in according to the actual situation of trade, transportation and goods。Insurance policy is the basis for risk determination, premium calculation and policy issuance by insurance companies。
The shipping date on the policy must be earlier than the shipping date on the bill of lading。The policy shall be insured with the insurance company prior to shipment。
Six is the quantity list
Quantity is a proof of the quantity of goods, usually issued by the exporter or manufacturer。
If the credit has special requirements on the quantity order, these must be reflected in the quantity order。
Seven is the Certificate of origin, referred to as CO
The certificate of origin is mainly used to prove the original production or manufacturing country of the goods, so that the import can verify the source of the import and implement the taxation of differentiated tariff treatment。The certificate of origin is also the basis for tariff reduction。
The English name on the certificate of origin must match the name of the bill of lading。They're all customs documents, so they have to be the same。
Octet certificate
The beneficiary's certificate is usually a certificate issued by the beneficiary of the credit in accordance with the requirements of the credit (the beneficiary) to prove that the contract obligations have been fulfilled。Common are the quality of goods, packaging, shipping notice, samples or copies, etc。
If the credit has special requirements for the beneficiary's proof, these must be reflected in the beneficiary's proof。
Nine is the guest verification
Customer inspection means that the quality inspection needs to be approved by the customer through various ways to be effective。The importer proposes this clause because L/C deals with documents rather than goods。In order to prevent exporters from shipping fake and inferior products, importers must inspect the goods before shipment and issue inspection certificates accordingly。If the exporter is not qualified, the exporter will not be able to obtain the inspection certificate of the importer, so it can not receive the payment, which plays a role in protecting the interests of the importer。
Ten quality certificate
A certificate of quality is an appraisal and certificate of the quality and specifications of the exported goods。Our country is generally issued by commodity inspection bureau。
If the letter of credit has special requirements for the quality certificate, it must be reflected on the quality certificate。If there is no regulation as to who will issue this quality certificate, the beneficiary may issue it himself。
11. Shipping advice
Shipping advice mainly refers to the notification sent by the exporter to the importer after shipment, including the details of the shipment of the goods。The purpose is for importers to prepare to raise funds, pay, insure and receive goods。
If the credit has special requirements for the shipping advice, it must be reflected in the shipping advice。
12. Fax report
If the credit has special requirements for the fax report, it must be reflected in the fax report。
Data preparation
1, the application form and the letter of commitment of the applicant, the application must be sealed
2.Application for margin business (in principle, the domestic margin shall not be less than 20%);
3.Domestic letter of creditIncrement audit form;
4.Upstream and downstream contracts, downstream contracts indicate my behavior;
5.Latest credit approval;
6.Other relevant information to check the authenticity of the trade background。
Note: When applying for domestic certificate, be sure to check whether the other bank has a domestic certificate signing relationship with our bank。If you sign a contract, you can issue a domestic certificate。So far, Bank of China, CITIC Bank, Bank of Communications, Minsheng Bank, Guangdong Development Bank, Shanghai Pudong Development Bank, Industrial Bank, Everbright Bank, Baoshang Bank, Huishang Bank, Bank of Changsha, Bank of Nanjing, Agricultural Bank of China, Huarong Xiangjiang Bank, Bank of Beijing, China Merchants Bank。