This format is for use in designing a Letter of Credit Instructions form appropriate for your own company.

	LETTER OF CREDIT INSTRUCTIONS

Date:  _____________

To:	From	____________________________________
	Address	____________________________________
	City & State	____________________________________
	Country	________________ Zip Code _________
	Attn	____________________________________
	Telephone	____________________________________
	Fax	____________________________________

RE:	¨ Our Pro-Forma Invoice# _____________________ Dated _________________
	¨ Your Purchase Order# _____________________ Dated _________________
	¨ Commercial Contract# _____________________ Dated _________________

Gentlemen:

In connection with your above-referenced purchase, the following terms and conditions are for inclusion in your irrevocable letter of credit.  We are providing you with these details as a confirmation of our understanding of the terms of sale covering this transaction.  If these details do not agree with your understanding or if you are unable to comply with these terms and conditions, please notify us prior to the issuance of your letter of credit to avoid unnecessary delays and costs.  Thank you for your patronage and cooperation.

1.	The letter of credit must be issued no later than __________________ by a bank acceptable to us.

2.	The letter of credit must be irrevocable and be subject to the 1993 Revision of the Uniform Customs and Practice for Documentary Credits published by the International Chamber of Commerce (UCP500).

3.	The letter of credit must state that it is available with any bank by negotiation.

4.	The letter of credit must be opened with full details by SWIFT or tested telex
	
	In favor of:	____________________________
		____________________________
	Attn:	____________________________
	Telephone:	____________________________

[indicate the company name and address you will use in your invoices; if this is not the address you want your L/Cs mailed to, give separate instructions for where this L/C is to be sent]

		We will not initiate shipment until the actual letter of credit is received but it may expedite processing if you will fax a copy of the letter of credit to [name] at [fax number].  This must be a copy of your bank's actual SWIFT message sent to the advising bank.  A copy of your letter of credit application is not sufficient.
5.	
The letter of credit must be payable in U.S. dollars for	
		¨ up to an amount of __________________________
		¨ an approximate amount of __________________________

6.	The letter of credit must be advised through an acceptable, “prime” U.S. or European bank such as:

	 [list your preferred letter of credit advising banks]

7.	The letter of credit must authorize the advising bank to add its confirmation only if requested to do so by beneficiary.

8.	The letter of credit must authorize the negotiating bank to debit the issuing bank's account with a U.S. reimbursing bank with no deductions.  It will expedite processing, and possibly reduce the reimbursing bank's charges, if your bank indicates their account number with the reimbursing bank in the L/C.

9.	The letter of credit must be payable against drafts drawn, at the beneficiary's option, on the issuing bank, on the advising bank, or on the reimbursing bank.  Drafts must be
		¨ at sight
		¨ at ____ days from the date of the transport document/forwarder's receipt. 
		¨ at ____ days from the date of the invoice.
	
10.	The letter of credit must indicate:

	   	Ÿ	All banking charges outside the applicant's country, including any amendment charges, are for the
			account of the  ¨ applicant  ¨ beneficiary.

	   	Ÿ	Discount and acceptance charges for time drafts shall be for the account of the 
			¨ applicant  ¨ beneficiary.

	   	Ÿ	Reimbursement related charges must be for the account of the issuing bank.  Please instruct your
			bank to reflect this in their reimbursement authorization as well as in the letter of credit.

11.	¨ The letter of credit must be transferable by any bank.

12.	¨ The letter of credit must allow partial shipments.

13.	The latest shipping date in the letter of credit must be at least ____ days after the issuance date of the L/C.

14.	The letter of credit must allow a minimum of ____ days after the date of transport document/forwarder's receipt for presentation of documents.  Add 14 days if any documents required must be consularized or legalized or if they include an inspection certificate issued by S.G.S. or similar inspection service.  Expiration should be this same number of days after the latest shipment date at the counters of the negotiating bank.

15.	
The letter of credit must require the commercial invoice to describe the merchandise, in accordance with our pro-forma invoice, as (use only generic terms, avoiding details as to grade, quality, etc.):
		____________________________________________________________________________________
		____________________________________________________________________________________
		____________________________________________________________________________________
		____________________________________________________________________________________

		¨ EXW (Ex Works, Ex Factory)	¨ cleared for export
							¨ loaded on departing vehicle

		¨ FCA (Free Carrier At) 	 	¨ Seller's premises
							¨ Consolidator's terminal in Seller's country
						 	¨ Carrier's terminal
							¨ Airport of departure

		¨ CPT (Carriage Paid To)  	¨ Customs terminal in Buyer's country
							¨ Consolidator's terminal in Buyer's country
						   	¨ Buyer's premises
							¨ Airport of destination

		¨ CIP (Carriage & Insurance	¨ Customs terminal in Buyer's country
			        Paid To) 			¨ Consolidator's terminal in Buyer's  country
			 				¨ Buyer's premises
							¨ Airport of destination

16.	If you have selected a freight forwarder who will be receiving the goods for consolidation and/or shipment, payment must be available against a Forwarder's Cargo Receipt showing merchandise consigned to/at disposal of yourselves.  Otherwise the L/C must require either a multimodal transport document consigned to order of the issuing bank showing place of receipt as _________________ and place of delivery or final destination as ________________ or an air waybill consigned to yourselves showing airport of departure as ________________ and airport of destination as ________________.  L/C must require the multimodal transport document or air waybill be marked “Freight Prepaid” if terms are CIP or CPT or “Freight Collect” if terms are EXW or FCA.

17.	If terms are CIP, you may require a marine cargo insurance certificate covering
		¨ All risks warehouse to warehouse
		¨ All risks warehouse to warehouse including SRCC & War Risks

		If terms are EXW, FCA, or CPT and we are arranging the shipment, you may require a copy of a cable or fax message to yourselves giving date and means of shipment and description and value of the goods shipped, certified by the beneficiary (ourselves) to be true and accurate and to have been sent no later than two days after shipment.

We anticipate receipt of your letter of credit conforming to these requirements.