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Red Clause Letter of Credit Sample in Swift Format

















------------------ Instance Type and Transmission ----------------------
Original received from SWIFT
Priority/Delivery    :    Normal
Message Output Reference         :    1225 121016XXXXXXXXX5657939061
Correspondent Input Reference    :    1225 121016XXXXXXXXX1178375172

----------------------- Message Header ---------------------------------
Swift OUTPUT FIN 700 Issue of a Documentary Credit
Sender     :  ASIATRISXXX                 
Receiver   : PCBCCNBJXXX                
----------------------- Message Text ----------------------------------
27:   Sequence of Total
        1/1
40A:  Form of Documentary Credit
        IRREVOCABLE
20:    Documentary Credit Number
         ASIAIM00004050
31C:  Date of Issue
        130722
40E:  Applicable Rules
        UCP LATEST VERSION
31D:  Date and Place of Expiry
        131230-TURKEY
50:   Applicant
        ASIA BANK OF TURKEY TAS
        BUYUK HAN MAH. ISMAIL HAKKI BEY 
        CAD. NO:20 34500  
        SISLI,ISTANBUL/TURKEY
59:   Beneficiary - Name & Address
        NINGBO PLASTIC MACHINERY CO., LTD. 
        PLS SEE FIELD 47A ITEM 7 FOR ADDRESS DETAILS
32B:  Currency Code, Amount
         Currency    :    USD (US DOLLAR)
         Amount    :    #327.000,00#
39B:  Maximum Credit Amount
         NOT EXCEEDING
41A:  Available With...By... - BIC
        ASIATRISXXX
        ASIA BANK OF TURKEY TAS BUYUK HAN MAH. ISMAIL HAKKI BEY CAD. NO:20 34500  
        SISLI,ISTANBUL/TURKEY 
        BY MIXED PYMT
43P:  Partial Shipments
         NOT ALLOWED
43T:  Transhipment
         ALLOWED
44E:  Port of Loading/Airport of Departure
         ANY CHINESE PORT
44F:  Port of Discharge/Airport of Destination
         HAYDARPASA PORT ISTANBUL
44C:  Latest Date of Shipment
         131209
45A:  Description of Goods &/or Services
         NEW PLASTIC CUP MAKING LINE QTY:1 SET U/P:USD 327.000 FOR TOTAL AMOUNT:USD 327.000,00 AS 
         PER BENEFICIARY'S PROFORMA INVOICE REF NO:NB130522 DD:04.07.2013 
         INCOTERMS 2010:CIF HAYDARPASA ISTANBUL TURKEY
46A:  Documents Required
  1. DULY SIGNED COMMERCIAL INVOICE IN 2 ORIGINALS AND 3 COPIES CERTIFYING IN STRICT CONFORMITY WITH THE BENEFICIARY'S PROFORMA INVOICE REF NO:LL130522 DD:04.07.2013 AND SHOWING QUANTITY, DESCRIPTION ,ALSO STATING FOB VALUE OF THE GOODS FREIGHT AND INSURANCE SEPERATELY. 
  2. CLEAN ON BOARD B/L IN 3/3 ORGS.AND 3 N/N COPIES ISSUED TO THE ORDER OF ISSUING BANK NOTIFY APPLICANT,MARKED:'FREIGHT PREPAID'. 
  3. PACKING LIST IN 2 ORG.S AND 2 COPIES. 
  4. BENEFICIARY'S CERTIFICATE 1 ORG. STATING THAT SHIPMENT DETAILS INCLUDING DATE AND PLACE OF LOADING,NAME AGE,NATIONALITY,IMO NUMBER OF THE VESSEL,VALUE OF THE GOODS, GROSS AND NET WEIGHTS OF THE GOODS AND THE REF.NO OF THE L/C HAVE BEEN SENT TO OUR BANK'S FAX NO:+90 212 600 50 10 WITHIN 2 DAYS AFTER SHIPMENT DATE FOR INFORMATION PURPOSES.(FAX REPORT AND SHIPMENT DETAILS HAVE BEEN ATTACHED TO THIS DOC.) 
  5. CERTIFICATE BY BENEFICIARY STATING THAT 'CE'MARK HAS BEEN LABELLED ON PACKAGES OF THE GOODS AND TECHNICAL DOCUMENTS IN STRICT CONFORMITY CONCERNING LEGISLATION 
  6. FULL SET INSURANCE POLICY ISSUED TO THE ORDER OF ISSUING BANK FOR FULL CIF VALUE PLUS 10 PERCENT AND STATING THE NAME, PHONE AND FAX NUMBERS OF A CLAIMS SETTLING AGENT IN TURKIYE AND CLAIMS PAYABLE IN TURKIYE COVERING THE 
FOLLOWING RISKS FROM WAREHOUSE TO WAREHOUSE: 
+INSTITUTE CARGO CLAUSES (A) 
+INSTITUTE WAR CLAUSES (CARGO) 
+INSTITUTE STRIKE CLAUSES (CARGO) 
+RIOTS AND CIVIL COMMOTIONS, 
           ALSO INSURANCE TO CERTIFY THAT COVER IS NOT SUBJECT TO A FRANCHISE OR AN EXCESS (DEDUCTIBLE). 
  1. CERTIFICATE OF ORIGIN IN 1 ORG. AND 1 COPY LEGALIZED BY THE LOCAL CHAMBER OF COMMERCE ATTESTING THAT GOODS ARE CHINA ORIGIN. 
47A:  Additional Conditions
  1. ALL DOCUMENTS MUST BEAR OUR L/C REF. 
  2. IN CASE OF PRESENTATION OF THE DOCUMENTS WITH DISCREPANCIES, USD 100,00 WILL BE DEDUCTED FROM THE PROCEEDS AS AN ADDITIONAL PROCESS FEE. 
  3. DOCUMENTS ISSUED BEFORE L/C OPENING DATE NOT ACCEPTABLE. 
  4. PAYMENTS TO BENEFICIARY UNDER RESERVE AND ANY KIND OF GUARANTEE ARE NOT ACCEPTABLE 
  5. ALL DOCS MUST BE ISSUED OR FILLED IN ENGLISH 
  6. BENEFICIARY'S ADDRESS:DEVELOPED AREA OF NINGBO ECONOMIC DEVELOPMENT ZONE NINGBO CITY CHINA 
71B:  Charges
           
          ALL BANKING CHARGES AND COMMISSIONS OUTSIDE OF TURKEY ARE FOR BENEFICIARY'S ACCOUNT.

48:  Period for Presentation
          21 DAYS AFTER SHIPMENT DATE BUT WITHIN CREDIT VALIDITY.

49:  Confirmation Instructions
          WITHOUT

78:   Instruction to Paying/Accepting/Negotiating Bank

+30 PCT OF L/C AMOUNT SHALL BE PAID IN ADVANCE UPON RECEIVING ADVANCE PAYMENT GUARANTEE, 70 PCT OF L/C AMOUNT SHALL BE PAID UPON RECEIPT OF CREDIT CONFORM DOCS. 
+PLS ADVISE US THE REMITTANCE OF THE DOCS. BY MT754 MSG. QUOTING OUR REF.

72:  Sender To Receiver Information

+PLS SEND THE DOCS TO FOLLOWING ADDRESS BY DHL IN ONE LOT: ASIA BANK OF TURKEY TAS BUYUK HAN MAH. ISMAIL HAKKI BEY  CAD. NO:20 34500 SISLI,ISTANBUL/TURKEY
----------------------- Message Trailer ------------------------------
{MAC:00000000}
{CHK:XXXXXXXX}


















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Red clause letters of credit supply advance payments to exporters before they actually ship the goods to the importers. Exporters receive advance payments under red clause letters of credit mostly from the issuing banks. Issuing banks make the advance payment under a red clause letter of credit against presentation of an advance payment guarantee issued by the bankers of the exporter, guaranteeing a refund in the event of failure to ship under the credit.



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  • C1 Either field 39A or 39B, but not both, may be present 
  • C2 When used, fields 42C and 42a must both be present 
  • C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other
  • combination of these fields is allowed 
  • C4 Either field 44C or 44D, but not both, may be present 





MT 700 Network Validated Rules

  • When the documentary credit message exceeds the maximum input message length, additional documentary credit information should be transmitted via one or more MT 701s. Up to three MT 701s may be sent in addition to the MT 700.
  • Unless otherwise specified, a documentary credit advised to the beneficiary or another advising bank based on a SWIFT message constitutes an operative credit instrument.
  • For freely negotiable documentary credits, if the Receiver does not further transmit the credit by MT 710, it must add sentences to the effect that:
  • The advice to the beneficiary must be presented at each negotiation.
  • The negotiating bank must note each negotiation on that advice.
  • To avoid misunderstandings, where possible, banks are to use Bank Identifier Codes rather than expressions such as ourselves ,yourselves ,us, or you.
  • The advising bank must advise a documentary credit, including all its details, in a way that is clear and unambiguous to the beneficiary.





MT 700 Usage Rules