The terms of L/C are based on the content of the application form, and the content of the application form is filled in according to the terms of the import contract. To ensure consistency, the content of the L/C application form must be filled in strictly in accordance with the terms of the contract. The following uses the L/C application form templates of Ping An Bank and Bank of China as examples to introduce how to fill in the application form.
1. Application date
Fill in according to the actual application date, which is generally one month before the delivery date specified in the contract.
2. Delivery method
Currently, banks generally use electronic opening. Just draw an “x” in the box in front of it.
3. L/C nature and number
Fill in by the issuing bank. The nature of L/C is irrevocable and has been printed on its title.
4. Applicant
Must fill in the detailed name, address, telephone, fax, E-mail, etc. of the importer according to the import contract.
5. Beneficiary
The detailed name, address, telephone number, fax, E-mail, etc. of the exporter must be filled in according to the import contract.
6. Notifying Bank
Fill in the issuing bank or fill in according to the bank information provided by the exporter.
7. L/C Amount
Expressed in two forms, numbers and words, consistent with the contract amount, both written in English.
8. Partial Shipment and Transshipment
Fill in according to the provisions of the import contract and consistent with the contract content. If the import contract stipulates that partial shipment and transshipment are not allowed, it should be clearly stated in the L/C that partial shipment and transshipment are not allowed.
9. Shipping Terms
Fill in the port of shipment, port of destination, and latest shipment date of the goods according to the contract. If there is transshipment, it should also be listed.
10.Price terms
There are four options on the L/C application form: FOB, CFR, CIF and other conditions. Put an “x” in the box of the item according to the contract transaction conditions.
11.Payment method
There are four options on the L/C application form: Sight Payment, Acceptance, Negotiation, and Deferred Payment. Put an “x” in the corresponding box.
12.Draft requirements
The amount should be filled in as a percentage of the invoice amount payable under the L/C according to the contract provisions. If the contract stipulates that all payments are paid by L/C, the amount of the draft under the L/C should be filled in as 100% of the invoice amount; if the contract stipulates that the payment can be paid by L/C80% and T/T20%, the amount of the draft under the L/C should be filled in as 80% of the invoice amount, and so on. In addition, the payment period of the draft should also be filled in, such as sight or deferred. If it is a time draft, you must fill in the specific number of days, such as 30 days, 60 days, 90 days, etc. Finally, fill in the payee. According to the provisions of UCP 600, the payee of the draft under L/C must be the issuing bank or the designated payee.
13. Document terms
If there is a printed L/C application form, directly put an “x” in the box in front of the required documents, and then fill in the specific requirements after the document terms, such as how many copies, what should be included, etc. If the relevant requirements listed in the printed L/C application form are incomplete, you can fill them in clearly after the document terms.
The applicant must fill in the document terms according to the contract terms, and cannot arbitrarily propose requirements that exceed the contract provisions, nor can it reduce or reduce the requirements stipulated in the contract.
14. Goods under the contract
Fill in the name, specifications, quantity, packaging, unit price, total price, marks and other terms of the goods according to the contract. All contents must be consistent with the contract.
15. Attachment clauses
Some specific clauses have been printed on the L/C application form. If necessary, you can put an “x” in the box in front of it; if you need to add, you can fill it in the “Other Clauses” column according to the contract provisions and the needs of both parties.
16. Other
The bottom of the application form contains the applicant’s bank account (fill in the name of the bank account), account number, applicant, contact number, applicant (legal representative) signature and seal, etc.