APPLICATION FOR IRREVOCABLE DOCUMENTARY CREDIT
To：China Merchants Bank Co., Ltd. Date:___________________
Mark “X” in appropriate boxes
Please issue and despatch an IRREVOCABLE DOCUMENTARY CREDIT ("Credit") as per the terms of this application by
( Full teletransmission
( (Air) mail with preliminary
( Courier
teletransmission
Expiry date and place:
(______% more or less allowance on both Credit amount and quantity of Goods is allowed.
Applicant (name and address)
Beneficiary (name and address)
Advising Bank (if blank, any bank of your choice)
Amount in figures:
Amount in words:
Place of taking in charge / Dispatch from … / Place of receipt:
Port of loading / Airport of departure:
Port of discharge / Airport of destination:
Place of final destination / For transportation to …/ Place of delivery:
not later than :
This Credit is available:
WITH ( Issuing bank
( Any bank ( ____________
BY ( Negotiation ( Acceptance ( Sight Payment
( Deferred Payment
AT ( Sight (________days ______________________
against presentation of documents specified in Part 1 of the Schedule.
Drafts drawn on (Not applicable to sight or deferred payment DC)
( Issuing bank
( ____________________
Partial shipments
( allowed
( not allowed
Transhipments
( allowed
( not allowed
Transferability
( transferable
( not transferable
Confirmation of credit
(
requested
(
allowed if requested by Beneficiary
Documents to be presented within _______days after ( shipment date ( date of but within the validity of the Credit.
Goods description in brief ("Goods")
Price Terms: ( FOB ( CFR ( CIF ( FCA ( CPT ( CIP ( local delivery ( others as per ICC INCOTERMS
Other instructions:
(
Back-to-Back Credit
This is a back-to-back credit against the support of a master credit no. _________________ issued by ____________________________ (the "Master Credit"). The original Master Credit is ( enclosed ( being held by you.
(
Front-to-Back Credit
Issuance of this Credit is subject to the support of a master credit to be issued in our favour (the "Master Credit") and we undertake to lodge with you the original Master Credit forthwith upon receipt of the same.
(
Trust Receipt ("T/R") Loan Application
Please book a T/R loan for the settlement of drawing(s) under this Credit. This T/R loan application is subject in all respects to the Pledge and Trust Receipt attached. You are irrevocably authorized to complete the Pledge and Trust Receipt on our behalf at any time with the particulars of the T/R loan granted by you.
Payment Instructions:
Please debit our account for your commission, charges and usance interest (( the interest rate is LIBOR +(
)%) if any.
Our account no. is ____________________________.
All banking charges outside issuing bank .（including financing interest）are for (applicant’s account (beneficiary’s account and all relative reimbursement/payment charges are for (applicant’s account (beneficiary’s account.
Others:
Amount of margin deposit required: ,which shall be debited from our account no. .
(
Please fix exchange rate.
(
We hereby instruct you or any third party authorized by you to pay the usance draft（s） on sight basis ,the relevant interest and charges will be for account of us.
Additional Conditions:
We request you to issue the Irrevocable Documentary Credit in accordance with the instructions in this application. This application consists of this page and the Schedule (Part 1 and Part 2).
This application is subject to the Terms and Conditions printed overleaf
____________________________________
Authorised Signature(s) and Company Chop
In case of any queries, please contact our Ms/Mr.
Tel No.:
CONTRACT NO. CONTRACT AMT:
SCHEDULE
Part 1 - Documents required under the Credit ("Documents")
· Signed commercial invoice in ______original(s) and ______copy(ies) indicating this Credit no. and Contract no. .
· Packing list in ______ original(s) and _______ copy(ies).
· Full set of clean on board marine bills of lading marked ( “Freight Prepaid” ( “Freight Collect” consigned to the order of ( shipper, blank endorsed ( __________________________________, notifying ( the applicant with full name and address ( _____________________________________________________________________________(name and address).
· 2/3 set of clean on board marine bills of lading marked ( “Freight Prepaid” ( “Freight Collect” consigned to the order of ( shipper, blank endorsed, ( __________________________________, notifying ( the applicant with full name and address ( _____________________ (name and address).
· Full set of clean on board multimodal transport document marked ( “Freight Prepaid” ( “Freight Collect” consigned to the order of ( consignor or shipper, blank endorsed ( ______________________________________notifying ( the applicant with full name and address ( _____________________________________(name and address).
· 2/3 set of clean on board multimodal transport document marked ( “Freight Prepaid” ( “Freight Collect” consigned to the order of ( consignor or shipper, blank endorsed, (_______________________________notifying ( the applicant with full name and address ( ____________________________________________(name and address).
· Clean air waybill marked ( “Freight Prepaid” ( “Freight Collect” indicating actual flight date consigned to ( the applicant ( __________________________________________________ and notifying ( applicant with full name and address (
___________________________________________________________________(name and address).
· Clean rail waybill marked ( “Freight Prepaid” (“Freight Collect” indicating actual departure date consigned to
( the applicant( _______________________________________________and notifying ( applicant with full name
and address ( ___________________________________________________________________(name and address).
· Forwarding agent cargo receipt consigned to ( the applicant ( ________________________ and notifying ( applicant with full name and address ( _______________________________________________________ (name and address).
· Cargo receipt issued, dated and signed by the authorised signatory(ies) of the applicant (whose signature must be in conformity with the specimen held in your file), certifying that the goods have been received in good order, showing quantity, value of goods, date of delivery and this Credit no.
· Full set of insurance policy /certificate in ______ original(s) and/or______ copy(ies) blank endorsed, for full CIF or CIP value plus ____ % payable at destination in the currency of this Credit covering Institute Cargo Clauses (( A/( B/( C/( Air Cargo), Institute War Clauses (( Cargo/( Air Cargo), Institute Strikes Clause (( Cargo/( Air Cargo) from warehouse to warehouse.
· Certificate of origin in ______ original(s) and _______copy(ies) issued by _____________________________________.
· Certificate of quality in _______ original(s) and ______copy(ies) issued by ____________________________________.
· Certificate of quantity in _______ original(s) and ______ copy(ies) issued by __________________________________.
· Beneficiary’s certificate certifying that one set of non-negotiable documents including 1/3 set of original marine bills of lading has been sent to the applicant directly by courier/speed post and the postal receipt is required for negotiation .
Others:
Part 2 - Terms and Conditions of Application for Irrevocable
Documentary Credit
In consideration of the opening of the Credit by China Merchants Bank Co., Ltd. (the "Bank"), the applicant of this application (the "Applicant") agrees to the following conditions:
1. This application and the relevant Credit to be issued are subject to the latest version of Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce ("UCP"), the agreement(s) previously signed and delivered to the Bank by the Applicant, if any. In case of conflict, terms of this application shall prevail to the extent of conflict.
2. The Applicant undertakes to pay the Bank any sum in connection with the Credit upon the Bank's request and irrevocably authorizes the Bank to debit the Applicant's account(s) for any such sum at any time the Bank thinks appropriate. Such sum includes interest, costs, expenses, commissions, reimbursement claims from any nominated bank or confirming bank and any payment, prepayment or purchase effected by the Bank in connection with the Credit, all irrespective of any alleged discrepancies in the presented documents and/or any fraud that may be alleged at any time or discovered subsequent to such payment, negotiation, prepayment or purchase by any nominated bank, confirming bank or the Bank. The Applicant undertakes not to apply for any court order prohibiting the Bank from effecting any payment under the Credit.
3. The Documents and the Goods in relation to this Credit are pledged to the Bank as security for the Applicant's liabilities and obligations to the Bank but the risks of the Goods shall be with the Applicant at all time. The Applicant shall maintain or procure the ultimate buyer to maintain insurance coverage against loss and damage. Any insurance proceeds or sale proceeds payable to the Applicant shall be held by the Applicant on trust for the Bank.
4. All the terms and conditions of the Credit must be identical to that of the Master Credit (as defined in the application form), if applicable, except as otherwise provided in this application or agreed by the Bank.
5. The Bank is irrevocably authorised (but is not obliged) to (i) utilize documents presented under the Credit for the drawing of the Master Credit; (ii) negotiate the documents presented, prepay the deferred payment undertaking incurred by the Bank, purchase the draft accepted by the Bank or make any advance(s) against the documents presented under the Master Credit (the "Financing"); and (iii) directly apply the Financing proceeds to settle the corresponding drawing(s) under the Credit without first crediting such proceeds to the Applicant's account with the Bank, irrespective of discrepancies that may appear on the documents presented under the Credit (all of which, if any, are hereby waived).
6. The Applicant agrees and acknowledges that it is the sole responsibility of the Applicant to (i) ensure the clarity, enforceability, effectiveness and adequacy of any terms or requirements incorporated into any Credit; and (ii) comply with all applicable laws and regulations regarding the underlying transaction to which the Credit relates and obtain any necessary documents and approvals from any relevant governmental or regulatory bodies and produce such documents or approvals to the Bank upon request. The Bank is not responsible for advising and has no duty whatsoever to advise the Applicant on such issues.
7. The Applicant undertakes to examine the customer copy of the Credit (including all amendments to the Credit and whether in written or electronic form) issued by the Bank and irrevocably agrees that its failure to give a notice of objection about the contents of the Credit issued by the Bank within 2 banking days after the customer copy of the Credit is sent to the Applicant shall be deemed to have agreed to the contents of the Credit (and any amendments, if applicable) and to waive any rights to raise objections or pursue any remedies against the Bank in respect of the Credit.
8. If the Applicant instructs the Bank to permit T/T reimbursement, the Bank is irrevocably authorised to pay and/or reimburse the relevant claiming bank or reimbursing bank upon receipt of a claim from such bank even prior to the Bank's receipt of the presented documents. The Applicant shall bear all the relevant risks (including non-receipt and non-compliance risks of the presented documents) and shall reimburse and indemnify the Bank for any payment made under the Credit.
9. Notwithstanding any instruction(s) stipulated in this application, the Bank may, at its sole discretion, restrict, name or instruct any correspondent to be the advising, confirming or nominated bank in respect of the Credit.
10. Any action taken or omitted by the Bank or by any of its correspondents or agents in good faith under or in connection with the Credit shall be binding on the Applicant and shall not place the Bank or its correspondents or agents under any liability to the Applicant.
11. The Applicant agrees that the Bank is fully entitled to reject any discrepant documents presented under the Credit notwithstanding that the Applicant may have waived such discrepancy.
12. The Applicant shall from time to time, upon the Bank's request, place with the Bank such amount of margin deposit in such currency (the "Margin Deposit") at such time as the Bank may require. The Applicant agrees that i) the Margin Deposit shall cover and be security for all obligations and liabilities (whether actual or contingent, present or future) of the Applicant to the Bank howsoever arising from or relating to this application, the Credit or any related negotiation or financing made by the Bank; and ii) the Applicant has no right to use or withdraw any Margin Deposit until full discharge of such obligations and liabilities. The Bank is entitled to apply all or any part of the Margin Deposit to satisfy or reimburse the Bank's payment effected or to be effected under or pursuant to the Credit without notice to the Applicant. If the Applicant fails to provide the Margin Deposit as the Bank requests, the Bank may withdraw or set aside any sum out of any Applicant's account maintained with the Bank as the Margin Deposit.
13. Without prejudice to paragraph 12 above, the Applicant undertakes that at least 2 banking days before the due date of the Credit, it shall place with the Bank sufficient amount of deposit in any Margin Deposit account to cover any liability of the Bank under the Credit.
14. The Applicant agrees that the Bank may, at its sole discretion and without notice or consent from the Applicant, amend the terms and conditions submitted by the Applicant and/or insert additional terms and conditions into the Credit as the Bank thinks appropriate including, subject to the Beneficiary's consent, cancellation of the whole or any unused balance of any Credit issued by the Bank.
15. The Bank is entitled to charge the Applicant interest (which shall not be less than [ ]% per annum unless otherwise agreed by the Bank) and default interest (which shall not be less than [ ]% per annum unless otherwise agreed by the Bank) on any sum paid by the Bank under or pursuant to the Credit but not reimbursed by the Applicant at such rate(s), on such basis and in such manner as the Bank may absolutely determine.
16. The Applicant undertakes that it shall in all circumstances on demand indemnify the Bank or its delegate(s) on a full indemnity basis or provide the Bank with any cash or collateral in such form and value as the Bank may require against all claims, demands, payments, losses, costs (including legal fees), liability, damages, proceedings, actions, charges and expenses which the Bank or its delegate(s) may incur or suffer under or in connection with the Credit.
17. If this application is executed by more than one party, the obligations and liabilities of each of the parties are primary as well as joint and several.
18. This application is governed by and shall be construed in accordance with the laws of Hong Kong SAR.
.
