Letter of Credit

Avoiding Documentary Credit Problems

1. Sending the buyer a letter of credit proforma

To avoid problems and delays in payment, it is recommended that the exporter convey in

writing some guidelines to the buyer as to what terms the credit should contain, the complete

name and address of the bank to which the letter of credit should advised by the opening bank,

and details of shipment terms. If these are spelled out in advance of the issuance of the credit

than costly amendments may not be required. A sample letter of credit template, or proforma,

is indicated below:

SAMPLE LETTER OF CREDIT

TEMPLATE / PROFORMA

TO: { BUYER}

PROFORMA INVOICE:

YOUR REF.:

YOUR REF. DATE:

We have indicated below those terms and conditions that we would find acceptable in a letter of

credit issued by your bank. Your efforts to gain compliance with these terms and conditions in

the issuance of this letter of credit will ensure prompt dispatch of your order. If your bank is

unable to issue the credit within the following guidelines, please contact us providing information

on those areas that must be altered. This will eliminate needless delay and costs involved with

amendments after the credit has been opened. Only those items marked with an "X" will apply.

1.

[ ] The letter of credit is to be irrevocable and subject to the Uniform

Customs and practice for Documentary Credits, as published and updated

from time to time by the International Chamber of Commerce.

2.

[ ] The letter of credit is to be [ ] Advised [ ] Confirmed by our bank:

KeyBank National Association

Attn: International Operations

Telex No.: 212525 SNB UR

SWIFT No.: KEYBUS33

ABA.: 041001039

3.

[ ] The beneficiary is to be shown as:

sectn_4.doc

4.

[ ] The letter of credit is to be payable upon presentation of drafts drawn

at:

A. [ ]

B. [ ]

C. [ ]

D. [ ]

At sight

___ days after the date of the transport document (i.e., 90

days after date of B/L)

___ days after...