LC Application Form

19/03/2013 20:24

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.
  1. 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.
  2. 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.