Conditions for a Letter of Credit

          Applicant:
          Name:
          Address:
          City:
          Country:

          Beneficiary:
          Mondial Flowerbulbs
          Oude Rijksweg 92
          1756 EM, 't Zand (NH)
          The Netherlands

          Bank of beneficiary:
          Rabobank Nederland
          Gildenkwartier 199
          3511 DH, Utrecht
          The Netherlands
          Swift: RABONL2U

          Currency (ISO-code):
          EUR

          Amount:
          € ...,..

          Form of Documentary Credit:
          Irrevocable

          Credit to be available with:
          Rabobank Nederland, Utrecht

          Terms of Payment:
          30 / 60 / 90 days after B/L-date

          To be advised to Mondial Flowerbulbs:
          With / Without confirmation

          Partial shipment:
          Allowed / Not allowed

          Transhipment:
          Allowed / Not allowed

          Ultimate shipment date:
          ...

          Shipment from:
          ...

          Shipment to:
          ...

          Ultimate shipment date:
          ...

          Presentation period documents:
          ... days

          Date of expiry:
          ...

          Terms of delivery:
          Example: FOB Rotterdam, The Netherlands

          Description of goods:
          ...

          Documents required:
          ...

Applicant: Complete with your (company) name, address, city and country.

Amount: Fill out the required amount of the credit.

Terms of Payment: Specify the amount of days that has been agreed upon.

To be advised to: Hereby you can instruct the beneficiary's bank in the way they should advise the beneficiary. If the beneficiary's bank is to confirm the letter of credit then they commit themselves to payment upon presentation of credit complying documents.
Without confirmation the beneficiary's bank advises the beneficiary but does not commit itself to payment upon presentation of credit complying documents.
Without confirming the letter of credit may the beneficiary's bank wait until payment has been received from the applicant's bank before they issue payment to the beneficiary.

Partial Shipment: You can here indicate whether partial shipments are acceptable.
You should discuss this matter with Mondial Flowerbulbs prior to issuing the letter of credit to prevent any unnecessary amendments due to the fact that Mondial Fowerbulbs may not be able to meet their obligations.

Transhipment: Transhipment refers to the transfer of cargo from one means of transport to another, for example from one vessel to another.
As applicant, or buyer of goods, is this not desirable.
Note, transhipment is permitted under the Uniform Customs and Practise of Documentary Credits even though the letter of the credit states otherwise if shipment is effected in containers.

Ultimate shipment date: This is the latest date of shipment of the goods.
If no shipment is to be effected the date mentioned shall represent the expiry date of the letter of credit this is as per the Uniform Customs and Practice for Documentary Credits.

Shipment from: Here you should specify the place from where shipment is to be effected.
If the exact location is not known, you can mention The Netherlands.
If multi-modal transport is applicable (such as by boat and by plane) you can mention this in the "Enclosures" section.

Shipment to: Here you should specify the place of delivery.

Ultimate shipment date: This is the latest date of shipment of the goods.
If no shipment is to be effected the date mentioned shall represent the expiry date of the letter of credit this is as per the Uniform Customs and Practice for Documentary Credits.

Presentation period documents: The presentation period specifies the time available to Mondial Flowerbulbs to present its documents to the bank after shipment.
Note, you must take the total shipment period into consideration when determining the presentation period.
If the presentation period is too short, Mondial Flowerbulbs may not have sufficient time to present the documents at the aforementioned place of availability.
If the presentation period is not of importance to you then one may use the standard number of 21 days as per the Uniform Customs and Practice for Documentary Credits.

Date of expiry: The date of expiry states till what date the credit is available.
This date is determined by adding the number of days mentioned under "Presentation period documents" to the "Ultimate shipment date".

Terms of delivery: The term of delivery is a part of the goods description.
The delivery-term determines which party is responsible for the charges of the (main) freight and whether the required transport document is to specify "Freight Prepaid" or "Freight Collect".
The location (place) that is to be stated after the term of delivery depends on the delivery term and where the goods are to be shipped from and to.<br>
For example, delivery-term FOB with location Tokyo or delivery-term CIF location Rotterdam.
- EXW (Ex Works)
- FCA (Free Carrier)
- FAS (Free Alongside Ship)
- FOB  (Free On Board)
- CFR  (Cost and Freight)
- CIF (Cost Insurance Freight)
- CPT (Carriage Paid To)
- CIP (Cost Insurance Paid)
- DAF (Delivered At Frontier)

Description of goods: A short but compact description of the goods is generally sufficient unless a specification of quantities, weight, packaging or unit price seems necessary.
Note, a detailed goods description does not necessarily mitigate your risks.

Documents required: In this section of the form you must fill in the most commonly used documents that are to be presented under a letter of credit.
It is also possible to specify the number of copies required other than the original copy of a particular document.