The following is a list of terms related to beneficiaries. These terms will be selected in the letter of credit as needed. In addition, there are some clauses for internal communication of banks, which are not directly related to beneficiaries, so beginners need not delve into them.

Clause number clause attribute

20 documentary letter of credit Humber (letter of credit number)

23 Reference to advance notice (advance notice number)

27 Series Total (Message Page Number)

3 1C Date of Issue (Date of Issue) If this item is not filled in, the date of issue is the date of sending the message.

3 1D expiry date and place (expiry date and effective place of the letter of credit) This date is the date of final submission of documents.

32B Currency code and amount (currency and amount settled by letter of credit)

The expression of 39a percentage letter of credit amount tolerance is very special. The numerical value indicates the numerical value of percentage, such as 5/5, indicating the maximum fluctuation of 5%.

39b Maximum credit line (maximum credit line of letter of credit)

39C The additional risk amount indicates the amount of insurance premium, interest and freight involved in the letter of credit.

There are six forms of documentary credit.

(1) irrevocable (irrevocable documentary credit)

(2) Revocable (Revocable Letter of Credit)

(3) Irrevocable transferable (Irrevocable transferable documentary credit)

(4) Revocable and transferable (revocable and transferable documentary credit)

(5) Revocable standby letter of credit (revocable standby letter of credit)

(6) Revocable standby letter of credit (revocable standby letter of credit)

4 1A is applicable to ... after ... (designated method of lump-sum payment by banks and letters of credit)

(1) Designated bank for payment, acceptance and negotiation.

(2) There are five payment methods: payment by demand (immediate payment); Acceptable (long-term acceptance); Through consultation; Deferred payment; Through MIXED PAYMENT

(3) If it is a freely negotiable letter of credit, there is no restriction on the negotiation place of the letter of credit. The project code is: 4 1D, and the content is: any bank in …

42A drawee must appear at the same time as 42C.

42 money orders. . (Bill Payment Date) must appear at the same time as 42A.

42m Mixed Payment Details (Mixed Payment Terms)

42P Deferred Payment Details (Deferred Payment Terms)

43p partial shipment indicates whether the goods in this letter of credit can be shipped in partial shipments.

The transshipment clause indicates whether the letter of credit arrives directly or through transshipment.

44a Shipment/delivery/takeover at /form (place of loading, shipment and supervision).

44B is used for transportation to. . (Final destination of goods shipment)

Latest date of shipment latest date of shipment.

44C and 44D cannot appear at the same time.

44D shipment date (sailing date)

45a Description of goods and/or services (description of goods) Information and price terms of goods.

46A Required documents (document requirements) Requirements for various documents.

47A Additional Conditions (Special Terms)

48 Prompt period means the number of days after the transport document is issued.

Letter of credit strategy

49 confirmation instruction (confirmation instruction), in which

Confirmation: Require the confirming bank to confirm the letter of credit.

It can be added that the receiving bank can confirm the letter of credit.

The receiving bank is not required to confirm the letter of credit.

Applicants (applicants who open letters of credit) are generally importers.

5 1A applicant bank (the bank that opened the letter of credit)

53A Reimbursement Bank (Reimbursement Bank)

57A Notify by bank (advising bank)

The beneficiary (beneficiary of the letter of credit) is generally the exporter.

7 1B The fee indicates whether the fee is paid by the beneficiary (exporter). If there is no such item, it means that all other expenses will be paid by the applicant (importer and exporter) except the negotiation fee and transfer fee.

72 information from sender to receiver (postscript)

78 Instructions to Payment/Acceptance/Negotiating Bank

(Notes to Paying Bank, Accepting Bank and Negotiating Bank)

By reading the terms code, we can read the letter of credit more clearly. Then, how to review after getting the letter of credit? Can be carried out according to the following steps. The first is to focus on checking some key terms:

1. If you bring a copy, or check the fax in advance, check whether the documents are complete first. Pay special attention to check whether the switches at the end of each page and the next page are connected normally, so as to avoid fax copying caused by human negligence.

2. Check clause 40A and confirm that there must be irrevocable words.

3. Check whether the name of the beneficiary in Article 59 is correct. Because basically all documents will show the beneficiary's name, if there is an error-even a letter, all documents will be inconsistent. Even in order to accommodate the letter of credit, some documents made by ourselves can be changed, but those documents that need to be issued by state institutions cannot be changed because the beneficiary's name has been filed in advance.

4. Check whether the amount in Article 32B is accurate.

5. Check clauses 44C and 3 1D to see if shipment can be made in time as required. The time interval between 44C and 3 1D cannot be too short. Generally, it is required to be more than 10 day, and 15 day is appropriate. Because it takes some time to proofread and collect the bill of lading after the goods are loaded, especially if your office is far away from the export dock. 44C and 3 1D are very important terms. If this time passes, there will be nothing to say about the major discrepancies that lead to the invalidation of the letter of credit. Reference can also be made to article 48. However, in the current letter of credit, the time of clause 3 1D plus the time of clause 48 is exactly the time limit of clause 44C.

6. Check whether 45A is consistent with the contract; If not, see if it is acceptable. In particular, sometimes customers like to generalize the product name description in this clause for the purpose of tax avoidance, such as changing the second layer of pigskin to "leather". However, when doing export commodity inspection, the State Commodity Inspection Bureau is not allowed to simplify it in this way, which will inevitably lead to inconsistent documents. So pay attention to the scale. If we can't do it according to the customer's requirements, we will inform the customer to modify it in time.

7. Key audits 46A and 47A. 46A is a requirement for file types, while 47A is a supplement to files and other requirements. These two clauses are the most important and core parts of the letter of credit, which should be examined word by word, without any punctuation or ambiguity. If in doubt, please ask your bank and peers for help, or contact customers. Among them, the bank's opinion is the most important, so it must be made clear and thorough, and never take it for granted.

For 46A, we might as well make a separate list, one by one, to check the types of certificates, the number of names, the issuing institution, and whether it can be timely and complete in recent years. For example, one case requires one original and three copies of the GSP certificate of origin (Form A). In fact, in general, there is only one certificate and two pairs of GSPs. If this detail is ignored in the audit, there will be trouble in making documents.

The same is true of article 47A. Sometimes it is not only the design of documents, but also the cost involved. For example, documents need to be certified by CCPIT/Chamber of Commerce, which means an extra fee.

Pay attention to check whether there are inconsistencies and conflicts in the provisions of the document.

8. Review other articles. It can be audited according to the clause code to see if there are any errors. Pay attention to the division of bank charges. The principle of fairness is sharing. It is generally believed that "expenses incurred outside the applicant's country should be borne by the beneficiary". Some customers will stipulate that "all expenses except the opening fee shall be borne by the beneficiary", which is obviously unfair.

Besides the terms themselves, we should also pay attention to the issuing bank. Especially those unknown and unheard of small banks in Africa and South America. Because the letter of credit depends on the bank's credit, if the bank is unreliable, the exporter will face the danger of both goods and goods. Therefore, before opening an L/C, you should check with the customer first, or directly ask for "opening an L/C through a well-known bank in Europe and America". If the customer refuses on the grounds of inconvenient operation, he can accept the letter of credit from a small bank, but requires well-known European and American banks to "confirm". Confirmation means asking another reliable bank to be the guarantor of this letter of credit. If the issuing bank refuses to pay unreasonably, the confirming bank will bear the responsibility for payment. Due to the relatively perfect and developed judicial system and banking supervision system in Europe and America, the reputation of commercial banks is generally high. Confirmation is to pay the bank confirmation fee, but it gives the letter of credit "double insurance", which is a compromise choice when customers refuse to open a letter of credit with big banks and are unwilling to turn their faces.

If the letter of credit is verified correctly, it can be accepted and acted accordingly. We remember that foreign trade is the transaction of documents, and the letter of credit itself is based on this principle. Therefore, once the letter of credit is confirmed, it should be regarded as the absolute authoritative standard for future documentary work. In order to deepen this understanding, it is considered that it is more important and even extreme to make documents according to the requirements of the letter of credit than to prepare goods for shipment according to the agreement. Even if there is something wrong with the goods, the "beautiful" documents can still get the money; On the other hand, if there are problems with the documents, no matter how good the goods are or how hard the service is, they will still suffer. The so-called "beautiful" documents, its standard is "documents are consistent, simple and consistent", that is, documents are consistent with letters of credit, and the same content columns between documents are consistent.