- •Banking 1 documentary credit
- •1.1 The importer applies to the bank for opening the credit
- •1.2 The buyer places an order and informs the seller of the opening of the l/c
- •1.3 The seller receives the order and confirms it
- •1.4 The bank advises the seller that the credit is available (I.E. Confirms the credit)
- •1.5 The seller sends the documents to the bank
- •Documentary credit part II
- •2.1 The buyer replies to the seller’s request to prolong the time of delivery and discusses amendments to the l/c
- •2.2 The buyer advises the bank of the amendment agreed upon with the seller
- •3.1 The buyer informs the seller of discrepancies in the documents
- •3.2 The buyer advises the seller of payment and asks to comply with the requirements of the credit
- •4 The bank advises the buyer of payment
- •Part II
- •Vocabulary
- •Part II
- •Part II
1.1 The importer applies to the bank for opening the credit
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MAPLELEAF Inc. 89 KLF Montreal Canada | ||
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Our ref. Your ref.
3 July 20__ IMPEX Bank 24 Central Park Drive Montreal Canada
Dear Sirs
Please open an irrevocable documentary credit for 10,000.00 (ten thousand) dollars in favour of JBL Netcomps Ltd., England.
We are attaching to the letter your application form with all the relevant details completed.
Please keep us informed of the passage of the documents.
Yours faithfully D.Adair D.Adair Manager
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1.2 The buyer places an order and informs the seller of the opening of the l/c
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MAPLELEAF Inc. 89 KLF Montreal Canada | ||
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Our ref. Your ref.
10 July 20__ JBL Netcomps Ltd. 12 a Belgrave London UK
Dear Sirs
We thank you for your letter of 30 June replying to our enquiry and enclosing your catalogue and details of your terms. We hope that the goods are still available and have decided to place the attached order with you and would be glad if you could give it your early attention.
We have instructed the Impex Bank to open a credit for 10,000.00 dollars in your favour, valid until 15 September. The credit will be confirmed by General Bank, London, who will accept your draft on them at 60 days for the amount of your invoice. Please attach the following documents to your draft:
2 bills of lading, 2 commercial invoices, Insurance policy for 11,500 dollars.
The sum of the credit is sufficient to cover c.i.f. shipment and bank commission on the draft. Despatch and marking instructions will be given by our forwarding agents in London, who will advise you of their charges. Please advise us by airmail when the goods have been despatched.
Yours faithfully D.Adair D.Adair Manager
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1.3 The seller receives the order and confirms it
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JBL Netcomps Ltd. 12 a Belgrave, London, UK | ||
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Our ref. Your ref.
July 18th 20__ MAPLELEAF Inc. 89 KLF Montreal Canada
Dear Sirs
We are very pleased to have your order and are able to confirm that all the items required are in stock. It is a pleasure to have the opportunity of supplying you and we are quite sure you will be satisfied both with the quality of our goods and our service.
Your choice of method of payment is quite acceptable to us, and we note that this will be by irrevocable letter of credit for a sum not exceeding 10,000.00 dollars, valid till September 15th. When we receive confirmation of this credit from General Bank, London, we will make up your order and await despatch instructions from your agent.
We assure you that this order and all further orders made will have our immediate attention.
Yours faithfully G.Simpson G.Simpson Manager
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