This is mainly based on the time limit for importers and exporters to deliver and settle the payment. The validity of the letter of credit is determined by the issuing bank, and the general applicant will set the delivery date at about 20 days. The letter of credit stipulates that the beneficiary's negotiation time is 65,438+05-265,438+0 days after shipment. The concept of shipment is general. Sometimes the issuer requires 65,438+05-265,438+0 days after warehousing, sometimes 65,438+05-265,438+0 days after sailing, and sometimes 65,438+0 days after bill of lading is issued. In addition, international practice stipulates that the negotiating bank must give negotiation within 2 weeks after receiving the negotiation documents. This date is not specified, but it is an international practice.

Generally speaking, the validity period of a letter of credit is the best: the latest shipment date +2 1 day, or the latest shipment date +7 days (such as short-distance transaction of freight to Hong Kong). In addition to the validity period, the letter of credit also has the date of presentation, so when presenting documents, it should be noted that it can neither expire nor exceed the latest date of presentation stipulated in the letter of credit (if the letter of credit does not stipulate the date of presentation, but the original transport document is required to be presented, according to Article 14C of UCP600, the date of presentation is 2 1 day after the latest shipment date). In addition, pay attention to whether the presentation place is in the beneficiary's location or the issuing bank.

Obligations and responsibilities of L/C applicant and issuing bank

The applicant has three main obligations to the issuing bank:

(1) The applicant must repay the loan paid by the issuing bank to the beneficiary for obtaining the documents. Before he pays, the document as the title certificate still belongs to the bank.

(2) If the documents are consistent with the terms of the letter of credit and the applicant refuses to "exchange the bill", the frozen funds in the deposit or account shall be owned by the bank.

(3) It is the responsibility of the applicant to provide the issuing bank with all the expenses required for opening the letter of credit.

The responsibility of the issuing bank to the applicant:

First of all, it is the responsibility of the issuing bank to open the letter of credit as soon as possible after receiving detailed instructions.

Secondly, once the issuing bank accepts the application for opening a letter of credit, it must act in strict accordance with the instructions of the applicant.

To sum up, we can know that the validity of the letter of credit is determined by the issuing institution, and generally the applicant will set the delivery date at about 20 days.