Deferred payment is one of the payment options available under letters of credit, along with sight payment, acceptance and negotiation.
Under deferred payment terms, exporters receive letter of credit amount not at sight but after a certain period of specific date, such as 30 days after shipment, 60 days after commercial invoice date etc.
Today, I would like to share an irrevocable deferred payment letter of credit sample in swift format.
Recently I have explained the reasons why I have started to put sample letters of credit on my website.
Please read my previous post titled “Sample Letters of Credit – Part I” “Introduction to working with a letter of credit sample” to understand pros and cons of lc samples.
I also highly recommend you to read “Sample Letters of Credit – Part II” – “Guidelines How to read sample letter of credit texts on my web site” before starting to study my irrevocable deferred payment letter of credit sample.
Irrevocable Deferred Payment Letter of Credit Sample
10 July 2013 Wednesday
—————— 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 : BANCOSPAXXX
BANCO BRASIL SA
RUA BRIG. LUIZ ANTONIO 1827
Receiver : CREDITBAXXX
CREDIT BANK .
BUYUKDERE CADDESI LEVENT
———————– Message Text ———————————-
27: Sequence of Total
40A: Form of Documentary Credit
20: Documentary Credit Number
31C: Date of Issue
40E: Applicable Rules
UCPURR LATEST VERSION
31D: Date and Place of Expiry
IMPORTADORA LTDA RUA LUNARDELLI,
140-C CURITIBA – PR – BRASIL
GOOD FOOD EXPORTER LTD.STI
ORGANIZE SAN.BOLGESI 35000 IZMIR – TURKEY
32B: Currency Code / Amount
39B: Maximum Credit Amount
41A: Available With … By …
BY DEF PAYMENT
42P: Deferred Payment Details
90 DAYS AFTER SHIPMENT DATE
43P: Partial Shipments
PARTIAL SHIPMENTS ARE ALLOWED
TRANSHIPMENTS ARE ALLOWED
44E: Port of Loading / Airport of Departure
ANY PORT IN TURKEY
44F: Port of Discharge / Airport of Destination
PARANAGUA PORT – PR – BRAZIL
44C: Latest Date of Shipment
45A: Description of Goods and/or Services
2.400 CARTONS OF SULPHURED APRICOTS. AS PER PROFORMA INVOICES NRS. 940412 DATED APRIL 03, 2012. INCOTERMS: FOB.
46A: Documents Required
- 03 ORIGINALS PLUS 03 COPIES OF SIGNED COMMERCIAL INVOICE SPECIFYING FOB AMOUNT SEPARATELY, SHOWING DESCRIPTION OF GOODS AND PAYMENT TERMS OF THIS L/C.
- 03 ORIGINALS PLUS 03 COPIES OF OCEAN BILL OF LADING, CONSIGNED TO THE ORDER OF IMPORTADORA LTDA RUA LUNARDELLI,,140-C, CURITIBA – PR – BRASIL, NOTIFY THE SAME AS CONSIGNEE, MARKED TOTAL FREIGHT COLLECT, SHOWING ITS VALUE IN FIGURES.
- 03 ORIGINAL OF PACKING LIST.
- 01 ORIGINAL OF ANALISYS CERTIFICATE.
- 01 ORIGINAL OF PHITOSANITARY CERTIFICATE.
- 01 ORIGINAL OF CERTIFICATE OF ORIGIN.
47A: Additional Conditions
- INSURANCE WILL BE COVERED BY APPLICANT IN BRAZIL.
- NUMBER OF THIS LETTER OF CREDIT MUST BE STATED IN COMMERCIAL INVOICE AND B/L.
- USD.40,00 FEE WILL BE DEDUCTED FROM PAYMENT FOR EACH SET OF DISCREPANT DOCUMENTS PRESENTED.
ALL BANKING CHARGES OUTSIDE BRAZIL ARE FOR BENEFICIARY’S ACCOUNT.
48: Period for Presentation
DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS AFTER ISSUANCE OF THE TRANSPORT DOCUMENT BUT WITHIN THE VALIDITY OF THIS CREDIT
49: Confirmation Instructions
53A: Reimbursing Bank
PNBPUS3NNYC WELLS FARGO BANK, N.A.
78: Instructions to the Paying / Accepting / Negotiating Bank
- WHETHER ALL TERMS AND CONDITIONS ARE COMPLIED WITH, PLEASE CLAIM REIMBURSEMENT AT MATURITY DATE.
- AT NEGOTIATION OF SHIPPING DOCUMENTS, PLEASE INFORM US THRU TESTED MESSAGE THE AMOUNT OF DOCUMENTS, SHIPMENT,PRESENTATION AND MATURITY DATES, COMMERCIAL INVOICE AND B/L NUMBERS, AND CONFIRMING THAT NEGOTIATED DOCUMENTS ARE BEING REMITTED TO US BY SPECIAL COURIER TO OUR OFFICE AT RUA MARECHAL DEODORO, 474, ANDAR -CURITIBA-PR-BRASIL. HESPANHOL, ALSO INFORMING COURIER’S COMPANY AND NUMBER.
- PLEASE ADVISE BENEFICIARY URGENTLY UNDER ADVISE TO US.
———————– Message Trailer ——————————
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