How to Read Sample Letter of Credit?

On my previous post, I have explained “How to Work With a Letter of Credit Sample.”

Today’s post is the second part of the explanatory articles regarding the letter of credit samples.

After reading this article, you should comprehend how to read a sample letter of credit.

On this page, you can find detailed explanations each field of a letter of credit, which is issued in a swift format.

Please click related below links for further explanations in each letter of credit field.

How to Read Sample Letter of Credit?

1. To understand the form of documentary credit: Please look at field 40A : Form of Documentary Credit in the swift message.
2. To understand the applicant of the documentary credit. Please look at field 50 : Applicant on the swift message.
3. To understand the beneficiary of the documentary credit. Please look at field 59 : Beneficiary – Name & Address on the swift message.
4. To understand the applicable rules of the documentary credit. Please look at field 40E : Applicable Rules on the swift message.
5. To understand the date of issue of the documentary credit. Please look at field 31C : Date of Issue on the swift message.
6. To understand the date and place of expiry of the documentary credit. Please look at field 31D : Date and Place of Expiry on the swift message.
7. To understand the currency code and amount of the documentary credit. Please look at field 32B : Currency Code, Amount on the swift message.
8. To understand whether letter of credit allows any tolerance level or not. Please look at field 39B : Maximum Credit Amount on the swift message.
9. To understand the payment terms of the documentary credit as well as by whose counters letter of credit is payable. Please look at field 41A : Available With…By… on the swift message.
10. To understand whether partial shipments and transshipments are allowed or not on the documentary credit. Please look at field 43P : Partial Shipments and field 43T : Transhipment on the swift message.
11. To understand the port of loading and port of discharge of the documentary credit. Please look at field 44E : Port of Loading and field 44F : Port of Discharge on the swift message.
12. To understand the latest date of shipment of the documentary credit. Please look at field 44C : Latest Date of Shipment on the swift message.
13. To understand how goods and services are defined on the documentary credit. Please look at field 45A : Description of Goods &/or Services on the swift message.
14. To understand which documents are required under the documentary credit. Please look at field 46A : Documents Required on the swift message.
15. To understand what kind of additional conditions are stated on the documentary credit. Please look at field 47A : Additional Conditions on the swift message.
16. To understand which party is responsible for the charges of the documentary credit. Please look at field 71B : Charges on the swift message.
17. To understand period for presentation of the documents required under the documentary credit. Please look at field 48 : Period for Presentation on the swift message.
18. To understand whether the documentary credit is confirmed or not. Please look at field 49 : Confirmation Instructions on the swift message.
19. To understand whether any reimbursing bank defined under the documentary credit or not. Please look at field 53A : Reimbursing Bank – BIC on the swift message.
20. To understand what sort of instructions given by the issuing bank to the Paying/Accepting/Negotiating Bank under the documentary credit. Please look at field 78 : Instructions to Paying/Accepting/Negotiating Bank on the swift message.
21. To understand the second advising bank of the documentary credit. Please look at field 57D : `Advise Through` Bank -Name & Address on the swift message.