Foreign Buyer Instruction Letter

To: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Pro forma
Invoice #: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Your
Reference #: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

We have indicated below those terms/conditions we will find acceptable
in a Letter of Credit issued by your bank. Your efforts to gain
compliance with these terms/conditions in the issuance of the Letter of
Credit will ensure prompt dispatch of your order. If your bank is not
able to issue the credit within the following guidelines, or these
details do not agree with your understanding of the transaction, please
contact us, providing information on those terms/conditions in question.
This will eliminate additional costs and delays of issuing an amendment,
once the Letter of Credit has been issued. Only those items we have
marked "X" will apply to the Letter of Credit:.

The Letter of Credit (LC) must be irrevocable and subject to the UCP 600
\[*[Uniform Customs and Practice for Documentary
Credits\]]{.underline}*, as published and updated by the International
Chamber of Commerce.

1.  This LC is to be advised through the following
    bank\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

> SWIFT: TELEX:

2.  The LC must be issued with the following confirmation instructions:

-   WITHOUT

-   MAY ADD -- only at the request of the Beneficiary

3.  The BENEFICIARY is to be shown as:

> **Name**
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> **Address**
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

4.  All fees are for the account of the applicant, unless otherwise
    negotiated.

5.  LC is to be \_\_\_ advised
    through\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> \_\_\_ confirmed by
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

6.  The LC is to be payable in:

    -   U.S. Dollars

    -   Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7.  The amount of the LC is to be specified as:

-   Not to exceed

-   About (+/-10%)

-   Other (as stated)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

8.  The LC must be payable against drafts [drawn on]{.underline}:

-   the Issuing Bank

-   the Advising Bank

-   the Reimbursing Bank

9.  Drafts must be drawn

-   At Sight

-   At \_\_\_\_days after Sight

-   At \_\_\_\_days from the date of the transport document/forwarder's
    cargo receipt

-   Other:

10. The LC is to specify shipment of (generic terms, please. Avoid
    details):

11. Shipping terms \[INCO Terms 2000\]

> select one:

# Named City or Port

-   EXW (Exworks / Origin)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   CFR (Cost & Freight / Destination)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   CIF (Cost, Insurance, & Freight / Destination)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   CIP (Carriage, Insurance, Paid to / Destination)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   CPT (Carriage Paid to / Destination)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   FCA (Free Carrier / Origin)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   FOB (Free on Board / Origin)
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

12. The latest shipping date is \_\_\_\_\_\_\_\_\_\_\_\_**OR**\_\_\_
    days after the LC issue date.

13. The LC expiry date is \_\_\_\_\_\_\_\_\_\_\_**OR**\_\_\_ days after
    the latest shipping date.

14. Documents must be presented within \_\_\_\_\_\_\_\_\_ days after the
    shipping date.

15. We agree to provide the following documents, in the quantities
    specified. Please, avoid other documentary requirements without our
    prior agreement:

-   Signed **commercial invoice** in one (1) original and
    \_\_\_\_\_\_\_\_\_\_copies.

-   **Packing list** in one (1) original and \_\_\_\_\_\_\_\_\_\_
    copies.

**Transport Documents:**

-   Clean Airway Bill consigned to
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   Bill of Lading

    -   Consigned to:
        \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    -   Consigned to the order of:
        \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   Multi-modal / Combined Transport Bills of Lading

    -   Consigned to:
        \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    -   Consigned to the order of:
        \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   Forwarder's Cargo Receipt consigned to
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Transport documents must show shipment

**From**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ To:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

With freight charges marked \_\_\_ Prepaid \_\_\_ Collect

and notify (freight forwarder / custom house broker, if applicable)

**Name**
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Address**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**[Additional Documents]{.underline}**:

-   Negotiable marine/air insurance policy or certificate in duplicate
    for 110% of commercial invoice value, covering all risks and war
    risks and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ as applicable.

16. Transshipments are:

> \_\_\_\_ Allowed \_\_\_\_ Not allowed

17. Partial shipments are:

> \_\_\_\_ Allowed \_\_\_\_ Not allowed

18. Issue Bank charges are for the account of the Applicant. ALL banking
    charges outside the country of the Applicant are for the account of
    the

> \_\_\_\_ Applicant \_\_\_\_ Beneficiary

19. **Acceptance** charges (if applicable) for time drafts are for the
    account of

> \_\_\_\_ Applicant \_\_\_\_ Beneficiary
>
> **Discount** charges (if applicable) for time drafts are for the
> account of
>
> \_\_\_\_ Applicant \_\_\_\_ Beneficiary

20. The LC must state that it is 'Transferable' and transfers, if any,
    may be done by any bank.