- Method of issuance - Place an "x" in the appropriate box(es). Indicate as Transferable only where it is intended that the Beneficiary may request the transfer of the Credit or a part thereof to another party.
Note: The Bank will issue the Credit by Canadian Imperial Bank of Commerce, Hong Kong Branch, if the Beneficiary is located in Hong Kong.
Expiry Date - Indicate the last date on which drafts and/or documents may be negotiated (usually, but not always in the country of the Beneficiary.) This date will usually be a few days after the last date on which shipment may be made. The extra few days allow the Beneficiary time to prepare and assemble the required documents.
Applicant - Indicate name, address and fax number (usually the importer).
- Beneficiary - Indicate name, address, contact name, telephone number, fax number. If known, the name of the Beneficiary's bank may also be included.
Note: The Bank reserves the right to advise the documentary credit directly to the Beneficiary through an Advising Bank of its choice. If it is imperative that the Credit be relayed through the Beneficiary's bank, this should be noted in box 17 - Additional Conditions.
Currency and Amount - Indicate the full name of the currency. If the amount of the Credit can be exceeded or reduced, indicate by what percentage.
Draft Requirements - Indicate the term of draft(s), if required. (e.g. Sight, 60 days, 90 days, etc.). Note that the term of draft(s) has no bearing on the expiry date of the Credit. Indicate if draft(s) are not required.
Partial Shipment(s) - Place an "x" in the appropriate box. If left blank, partial shipments will be prohibited.
Transhipment - Place an "x" in the appropriate box. If left blank, transhipments will be prohibited. Refer to current UCP which outlines the conditions under which banks will accept documents indicating that transhipment may take place even though transhipment may be prohibited under the terms of the Credit.
Shipment - Insert the points of dispatch and destination if shipment is to be effected by at least two different modes of transport, or insert the port of loading and port of discharge if shipment is port to port. For all other modes of transport, insert the shipment routing. Also, insert the latest date that the Beneficiary can effect shipment in the country of origin, if known, under "Latest Shipment Date". If a Forwarder's Cargo Receipt is required, a date inserted in the "Latest Shipment Date" box will be interpreted as the date the goods are to be received by the forwarder.
Covering - Insert brief description of the commodity to be shipped (do not include lengthy descriptions and details or attachments). If necessary, insert contract, sales or order number(s) indicating whether they are the Applicant's numbers or those of the Beneficiary. Details such as grades, quantity, base price, etc. should be omitted.
- Shipping Terms - A complete explanation of the shipping terms, including detailed guidelines on the responsibilities of buyer and seller, are contained in the current Incoterms, ICC Publication.
For port to port shipments - Use only FAS (named port of shipment), FOB (named port of shipment), CFR (named port of destination), CIF (named port of destination), DES (named port of destination) and DEQ (named port of destination)
For Multimodal or all other modes of transport - Use EXW (named place), FCA (named place), CIP (named place of destination), CPT (named place of destination), DAF (named place), DDU (named place of destination) and DDP (named place of destination). Wherever possible include the specific version of Incoterms (e.g. Incoterms 2000) referenced in the Sales Contract. Examples of complete Incoterms are "CPT Toronto Incoterms 2000"or "FOB Hong Kong Incoterms 2000".
Commercial Invoice - Indicate number of copies required.
Canada Customs Invoice - Indicate number of copies required.
- Transport Documents - Indicate number of copies and type - "Marine Bills of Lading (for port to port shipment only)", "Multimodal (Combined) Transport Bills of Lading, Air Waybill", "Railway Bill of Lading", "Truck Bill of Lading". Note that a "Forwarder's Cargo Receipt" is not a transport document under UCP.
Note: Unless otherwise indicated, the Credit will be established as follows:
- Multimodal (Combined) Transport Bills of Lading - Full set Multimodal (Combined) Transport Bills of Lading consigned to shipper's order blank endorsed marked "Notify (...Applicant's name and Address...)" and "Freight Prepaid" or "Freight Collect".
- Marine Bills of Lading - Full set on board Marine Bills of Lading consigned to shipper's order blank endorsed marked "Notify (...Applicant's Name and Address...)" and "Freight Prepaid" or "Freight Collect".
- Forwarder's Cargo Receipt evidencing the date merchandise received for shipment to Applicant marked "Notify (...Applicant's Name and Address...)" and "Freight Prepaid" or "Freight Collect". If a date is inserted in the "Latest Shipment Date" box it will be interpreted as the date the merchandise is to be received by the forwarder.
- Air Way bill consigned to Applicant marked "Notify (...Applicant's Name and Address...)" and "Freight Prepaid" or "Freight Collect".
- Railway Bill of Lading consigned to Applicant and marked "Notify (...Applicant's Name and Address...)" and "Freight Prepaid" or "Freight Collect".
- Copy of Truck Bill of Lading consigned to Applicant and marked "Freight Prepaid" or "Freight Collect".
- Parcel Post Receipt addressed to Applicant.
Conditions other than those above must be clearly stipulated.
Insurance - If insurance is to be covered by Applicant, state such. If covered by Beneficiary, indicate Insurance Policy/Certificate required together with the risks that are to be covered and percentage of coverage required. Unless otherwise stipulated, insurance coverage must be for at least 110% of the CIF or CIP value of the goods (Refer to current UCP).
Other documents - Indicate any other documents that may be required including the number of copies of each and content.
- Additional Conditions - If the amount of the Credit represents a percentage of the total cost of the goods, indicate this (e.g. represents 60% of invoice value, etc). Any other special conditions may be stated here.
Note: In the absence of your instructions to the contrary, the Credit will be issued instructing the negotiating bank to forward all documentation to CIBC in one mailing.
Banking Charges - Indicate which party (Applicant or Beneficiary) is responsible for banking charges other than the Issuing Bank's charges. The Applicant is responsible for the Issuing Bank's charges unless otherwise agreed. The Advising Bank however retains the right to claim from the Issuing Bank any charges which it cannot recover from the Beneficiary and these will be considered as for the account of the Applicant (refer to current UCP).
- Period for Presentation - Under UCP, unless stipulated otherwise, banks will accept documents up to 21 days after the date of shipment or until expiry date (whichever is earlier) regardless of length of transport. The length of the voyage should be considered when determining this figure.