{"id":3261,"date":"2018-10-31T10:53:56","date_gmt":"2018-10-31T14:53:56","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=3261"},"modified":"2019-04-06T06:19:45","modified_gmt":"2019-04-06T10:19:45","slug":"red-clause-letter-of-credit-sample","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2018\/10\/31\/red-clause-letter-of-credit-sample\/","title":{"rendered":"Red Clause Letter of Credit Sample"},"content":{"rendered":"

Letter of credit<\/a> that carries a provision (traditionally written or typed in red ink) which allows a seller to draw up to a fixed sum from the issuing bank, in advance of the shipment can be defined as a red clause letter of credit<\/span>.<\/p>\n

Red clause letters of credit<\/span> supply advance payments to the exporters before they actually ship the goods to the importers.<\/p>\n

Exporters receive advance payments under red clause letters of credit mostly from the issuing banks inside the letters of credit.<\/p>\n

It is also possible that the advance payments are payable outside of the letters of credit from the importers to the exporters.<\/p>\n

Normally, the issuing banks make the advance payment under red clause letters of credit<\/span> against presentation of\u00a0advance payment guarantees<\/a> issued by the bankers of the exporters, guaranteeing a refund in the event of failure to ship under the credit.<\/p>\n

———————————– Instance Type and Transmission —————————-
\nOriginal received from SWIFT
\nPriority\/Delivery : Normal
\nMessage Output Reference : 1225 121016XXXXXXXXX5657939061
\nCorrespondent Input Reference : 1225 121016XXXXXXXXX1178375172<\/p>\n

—————————————- Message Header —————————————–
\nSwift OUTPUT FIN 700 Issue of a Documentary Credit
\nSender : ASIATRISXXX
\nReceiver : PCBCCNBJXXX
\n————————— Message Text ———————————-
\n27: Sequence of Total<\/span>
\n1\/1<\/p>\n

40A: Form of Documentary Credit<\/span>
\nIRREVOCABLE<\/p>\n

20: Documentary Credit Number<\/span>
\nASIAIM00004050<\/p>\n

31C: Date of Issue<\/span>
\n130722<\/p>\n

40E: Applicable Rules<\/span>
\nUCP LATEST VERSION<\/p>\n

31D: Date and Place of Expiry<\/span>
\n131230-TURKEY<\/p>\n

50: Applicant<\/span>
\nASIA BANK OF TURKEY TAS
\nBUYUK HAN MAH. ISMAIL HAKKI BEY
\nCAD. NO:20 34500
\nSISLI,ISTANBUL\/TURKEY<\/p>\n

59: Beneficiary – Name & Address<\/span>
\nNINGBO PLASTIC MACHINERY CO., LTD.
\nPLS SEE FIELD 47A ITEM 7 FOR ADDRESS DETAILS
\n32B: Currency Code, Amount
\nCurrency : USD (US DOLLAR)
\nAmount : #327.000,00#<\/p>\n

39B: Maximum Credit Amount<\/span>
\nNOT EXCEEDING<\/p>\n

41A: Available With…By… – BIC<\/span>
\nASIATRISXXX
\nASIA BANK OF TURKEY TAS BUYUK HAN MAH. ISMAIL HAKKI BEY CAD. NO:20 34500
\nSISLI,ISTANBUL\/TURKEY
\nBY MIXED PYMT<\/p>\n

43P: Partial Shipments<\/span>
\nNOT ALLOWED<\/p>\n

43T: Transhipment<\/span>
\nALLOWED<\/p>\n

44E: Port of Loading\/Airport of Departure<\/span>
\nANY CHINESE PORT<\/p>\n

44F: Port of Discharge\/Airport of Destination<\/span>
\nHAYDARPASA PORT ISTANBUL<\/p>\n

44C: Latest Date of Shipment<\/span>
\n131209<\/p>\n

45A: Description of Goods &\/or Services<\/span>
\nNEW 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
\nINCOTERMS 2010: CIF HAYDARPASA ISTANBUL TURKEY<\/p>\n

46A: Documents Required<\/span><\/p>\n