Although there is no unified format for letters of credit, their basic items are the same, mainly including:
1. Description of the letter of credit itself. Such as the type, nature, validity period and expiration place of the letter of credit.
2. Requirements for goods. Such as the name, variety, specification, quantity, packaging, amount, price, etc. of the goods.
3. Requirements for transportation. The deadline for shipment, the place of departure and destination, the mode of transportation, whether it is possible to ship in batches and whether it is possible to transship in transit, etc.
4. Requirements for documents. Documents are mainly divided into three categories: (1) cargo documents (centered on invoices, including packing lists, weight lists, certificates of origin, commodity inspection certificates, etc.); (2) transport documents (such as bills of lading, which are certificates representing the ownership of goods); (3) insurance documents (insurance policies). In addition to the above three types of documents, there may be other documents, such as sample shipping certificates, copies of shipping notice telegrams, etc.
5. Special requirements. Different regulations can be made according to the changes in the political, economic and trade situation of the importing country (region) or the needs of each specific business, such as requiring the notifying bank to add confirmation; limiting the negotiation by a certain bank; the letter of credit will only take effect when the specified conditions are met, etc.
6. The issuing bank’s liability clause for guaranteeing payment to the beneficiary and the holder of the bill of exchange, the text of which is issued in accordance with the International Chamber of Commerce’s “Uniform Customs and Practice for Documentary Credits”, and the issuing bank’s signature and seal, etc.