When the import and export parties establish the settlement method by letter of credit in the trade contract, the importer can apply to the local bank for issuance of a letter of credit in accordance with the provisions of the trade contract and fill out the Application For Irrevocable Documentary. Credit). In this way, the importer becomes the applicant for issuance of letter of credit, and the application for issuance of letter of credit is the basis for the bank to issue a letter of credit. After the bank issues a letter of credit in accordance with the application for issuance of letter of credit, it legally forms a relationship with the importer regarding the rights and obligations of issuing a letter of credit. The contract between the two is the application for issuance of letter of credit. 1. Procedures for applying for issuance of letter of credit. There are three specific procedures for applying for issuance of letter of credit: (1) Submit a copy of the relevant contract: When the importer applies to the bank for issuance of a letter of credit, he must submit a copy of the import contract and documents to the bank. Required documents, such as import licenses, import quota certificates, approval documents from certain departments, etc. (2) Fill in the application form for issuance of certificate: The importer fills in three copies according to the unified application format for issuance of certificate prescribed by the bank, and keeps one copy with the business department; one copy with the financial department; and one copy with the bank. When filling out the application for issuance of a letter of credit, the requirements for the letter of credit must be stated in accordance with the specific provisions of the contract terms. The content must be clear and complete, and there must be no unclear records. (3) Payment of deposit: According to the customary practice of international trade, when the importer opens a letter of credit to the bank, he should pay a certain proportion of the deposit to the bank. The amount is generally a few percent to dozens of percent of the amount of the letter of credit. , generally based on the credit status of the importer. In my country's import business, the issuing bank requires the applicant to pay a certain proportion of RMB deposit according to different enterprises and transaction conditions, and then the bank can issue the certificate. 2. The bank’s initial review of new customers (1) For customers who come to the bank for import for the first time, they should submit: 1. A copy of the industrial and commercial business license; 2. The original approval document approving the import and export business; 3. Customer affiliation approval document (if any); 4. The legal representative’s authorization letter should contain: the full name of the client unit in Chinese and English, which should be consistent with the license and business license; the business operation and the signature, seal, official corporate seal, and financial seal of the authorized person should be listed. The authorization letter must be signed by the legal representative and stamped with the official seal; the official seal of the customer's company and the legal representative must be consistent with the relevant content in the import and export business approval document (if any) and industrial and commercial business license; the customer should clearly state in the authorization letter that the relevant The business is subject to relevant laws and regulations promulgated by the state and relevant functional departments; relevant rights and obligations are strictly performed in accordance with international practices). 3. Issues that must be paid attention to when issuing an import letter of credit (1) Before applying for issuance of a letter of credit, the import approval procedures and foreign exchange sources must be implemented. (2) The timing of issuing the L/C should be based on the principle that the seller can ship the goods within the shipment period specified in the contract after receiving the L/C. (3) The issuance requirement of "certificate and agreement" must be based on the original contract signed externally. You cannot use "Refer to Contract No. XX" as the basis, nor can you include relevant contract documents after the letter of credit, because the letter of credit is an independent document and does not depend on any trade contract. (4) If it is forward, the term of the bill must be clear, and the price terms must be consistent with the corresponding document requirements, cost burden and expression method. (5) Since the bank pays against a voucher, regardless of the quality of the goods, it is not bound by the contract. Therefore, in order to ensure that the quality of the goods meets the regulations, the other party can be required to provide an inspection certificate when issuing the certificate, clarify the specifications and quality of the goods, and designate a commodity inspection agency. (6) The content of the letter of credit is clear and accurate, clearly stipulating the issuer of various documents and stipulating the content expressed in each document. (7) The terms stipulated in the contract should be converted into the corresponding letter of credit conditions, because under the letter of credit settlement method, as long as the surface of the document conforms to the terms of the letter of credit, the issuing bank must pay according to the regulations. If the letter of credit application contains certain conditions but does not state that the corresponding documents should be submitted, the bank will consider that such conditions are not listed and will not accept the application. (8) Make it clear whether the letter of credit is a revocable letter of credit or an irrevocable letter of credit. (9) The foreign advising bank is designated by the issuing bank. If the importer and exporter insists on specifying the advising bank when signing the contract, it can be used as a reference by the issuing bank when selecting the advising bank. (10) Specify in the letter of credit whether to allow partial shipment, transshipment, non-acceptance of third-party shipping documents, etc. (11) Letters of credit issued by our state-owned commercial banks generally do not accept terms requiring confirmation from other banks.