LC Application Form
L/C Application Form is a sort of an agreement between customer and bank on the basis of which letter of credit is opened. Principal Branch provides a printed form for opening of L/C to the importer. A special adhesive stamp is affixed on the form in accordance with Stamp Act in force. While opening, the stamp is cancelled. Usually the importer expresses his decision to open the L/C quoting the amount of margin in percentage. Usually the importer gives the following information-
- Full name and address of the importer
- Full name and address of the beneficiary
- Draft amount
- Availability of the credit by sight payment/ acceptance/ negotiation/deferred payment
- Time bar within which the documents should be presented
- Sales type (CIF/FOB/C&F)
- Brief specification of commodities, price, quantity, indent no. etc.
- Country of origin
- Bangladesh Bank registration no.
- Import License/LCAF no. , IRC no.
- Account no. , Documents no.
- Insurance Cover Note/Policy no., date, amount
- Name and address of insurance Company
- Whether the partial shipment is allowed or not
- Whether the transshipment is allowed or not
- Last date of shipment
- Last date of negotiation
- Other terms and conditions (if any)
- Whether the confirmation of the credit is requested by the beneficiary or not.
- The L/C application must be completed/filled in properly and signed by the authorized person of the importer before it is submitted to the issuing bank.
- The L/C application needs to be submitted along with the following documents-
Proforma Invoice stating description of the goods including quantity, unit price etc.
- The Insurance Cover Note, issuing company and the insurance number.
- Four set of IMP Form.