Letter of Credit Instructions
GRANDA TOYS
Guidelines
for opening letter of credit,
2003
We are providing the following instructions as a guideline to be used when
opening a Letter of Credit to Choice Connection, Inc. Since a Letter of
Credit is such a critical document, it is important to ensure that there
are no typing mistakes, which can create a discrepancy and lead to our
subsequent request for amendment. Please keep this copy on file for your
reference.
1. Irrevocable and "at
sight" basis.
Please arrange through your bankers to provide us with an irrevocable
commercial letter of credit with the following terms and conditions.
2. Issuance:
Please ensure that the letter of credit is in the possession of the advising
bank and received by us 30 days before our agreed upon shipment date.
3. Beneficiary:
Choice Connection, Inc.
Contact: Jean Yen
Address:3555 Meridale Drivfe #2140 Las Vegas, NV 89147
Tel:702-247-8421
Fax:702-871-4219
Advising Bank:
Letter of credit should normally be advised through your bank’s central
international processing center. (Unnecessary delays may occur if you request
the L/C to be advised through your local bank branch).
Your local Bank
Bank address:
Tel:
Fax:
TELEX:
SWIFT:
CABLE:
4. Expiration Date:
Must be a minimum of 21 days after the latest ship date.
5. Latest shipment date:
As pre-confirmed in sales Contract. (L/C must be issued a minimum of 45 days
in advance of the latest shipment date.)
6. Presentation:
Documents
to be presented within 15 days form shipping date but within the validity of the
letter of credit. (Generally 15 days for ocean; 5-7 days for air)
7. Expiration Place: Hong Kong
8. Shipping Terms:
FOB (Free on board; China)
CIF (Cost, Insurance and Freight)
9. Shipment From: Qingdao, China.
Shipment To: _________________ (Port/Airport)
10. Partial shipments: Un-permitted.
Transshipment shipments:
Un-permitted.
11. Documents required:
Other than normal import documentation, which you may require (i.e.
Commercial invoice, packing list, etc.), the letter of credit must stipulate the
following structure for transport documents:
n
Full set clean on board marine bills of lading made out to order of
Shipper and blank endorsed and notify applicant. (For air shipments, an Airway
bills must show goods consigned to the issuing bank).
n Commercial Invoice. (2 original
& 1 copies)
n Packing/Weight list. (2 original
& 1 copies)
**If more than two original copies are required for the above documents, please specify that either true or Photostat copies are acceptable.
12. Covering Shipment of:
(A simple brief description of merchandise is preferable) as per Purchase Order
number/Contract __________________.
13. Bank Service Charges:
All charges incurred within the U.S. or whichever country are for the account of
L/C applicant, whereas those that arise outside the U.S. are to be borne by the
beneficiary.
14. Letter of Credit raised by full cable is preferable in that it will speed up the execution of the order and actual shipment.
15. Factory will accept limited changes no later than 10 working days before shipping date. After that time the timeless of the shipment may be affected and penalty charges for incurred costs will apply.
16. Reimbursement Instructions:
Please communicate the following reimbursement requirement to the letter of
credit issuing bank:
"At the very least, claims for reimbursement must be authorized by telegraphic or SWIFT telecommunication on a U.S. bank, preferably on a West Coast bank (if the negotiating/ confirming bank does not have authorization to debit the issuing bank’s account with them).
