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Import And Export Letter Of Credit for Indonesia

Import And Export Letter Of Credit Template for Indonesia

A Letter of Credit document governed by Indonesian law that facilitates international trade transactions by providing a secure payment mechanism between importers and exporters. This document, regulated under Indonesian banking laws and international UCP 600 guidelines, serves as a bank's commitment to pay the exporter upon presentation of compliant documents. It includes detailed terms and conditions regarding the trade transaction, document requirements, payment terms, and shipping conditions, while ensuring compliance with Indonesian foreign exchange regulations and trade laws.

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Import And Export Letter Of Credit

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What is a Import And Export Letter Of Credit?

The Import and Export Letter of Credit is a fundamental trade finance instrument used in international commerce under Indonesian jurisdiction. It provides security to both importers and exporters by involving banks as intermediaries in the payment process. This document becomes necessary when parties engage in cross-border trade and require a secure payment mechanism, particularly when dealing with new business partners or in high-value transactions. The document incorporates requirements from Indonesian banking regulations, Bank Indonesia directives, and international UCP 600 guidelines. It specifies the conditions for payment, required documentation, shipping terms, and compliance requirements, while also addressing foreign exchange considerations under Indonesian law. The document's structure ensures that exporters receive payment upon presenting compliant documents, while importers are assured of receiving goods as specified in the agreement.

What sections should be included in a Import And Export Letter Of Credit?

1. L/C Number and Reference: Unique identification number and reference details of the Letter of Credit

2. Form of Credit: Specification of whether the L/C is irrevocable or revocable (though most modern L/Cs are irrevocable)

3. Applicant Details: Complete name, address, and contact information of the importer/buyer

4. Beneficiary Details: Complete name, address, and contact information of the exporter/seller

5. Issuing Bank Details: Name and details of the bank issuing the Letter of Credit

6. Credit Amount and Currency: Specific amount and currency of the Letter of Credit, including any tolerance levels

7. Available With/By: Specifies where and how the credit is available (payment, acceptance, negotiation)

8. Expiry Date and Place: Date and location where the credit expires

9. Shipment Terms: Latest shipment date, partial shipments, transhipment conditions

10. Required Documents: List of all documents required for L/C negotiation

11. Goods Description: Detailed description of goods being traded

12. Incoterms: Specified international commercial terms governing the transaction

13. Payment Terms: Conditions and timing of payment including presentation period

What sections are optional to include in a Import And Export Letter Of Credit?

1. Advising Bank: Details of the advising bank when applicable, used when there's an intermediary bank

2. Confirmation Instructions: Used when confirmation is requested from another bank

3. Transferability Clause: Include when the L/C needs to be transferable to another beneficiary

4. Insurance Coverage: Additional insurance requirements beyond standard coverage

5. Special Conditions: Any additional terms or conditions specific to the transaction

6. Back-to-Back L/C Provisions: Include when the L/C is part of a back-to-back arrangement

7. Red Clause Provisions: Used when advance payment to the beneficiary is allowed

What schedules should be included in a Import And Export Letter Of Credit?

1. Schedule A - Commercial Invoice Requirements: Detailed requirements for the format and content of commercial invoices

2. Schedule B - Transport Document Requirements: Specific requirements for bills of lading or other transport documents

3. Schedule C - Insurance Document Requirements: Detailed requirements for insurance certificates or policies

4. Schedule D - Product Specifications: Detailed technical specifications of the goods

5. Appendix 1 - Required Certificates: List and format of required certificates (origin, inspection, etc.)

6. Appendix 2 - Banking Forms: Standard banking forms required for L/C processing

7. Appendix 3 - Document Presentation Schedule: Timeline and checklist for document presentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions








































Clauses






























Relevant Industries

Manufacturing

Agriculture

Mining

Textiles

Electronics

Automotive

Chemical

Food and Beverage

Commodities Trading

Retail

Pharmaceuticals

Construction Materials

Energy

Consumer Goods

Relevant Teams

Trade Finance

International Business

Treasury

Finance

Procurement

Supply Chain

Legal

Compliance

Operations

Documentation

Risk Management

Banking Relations

International Sales

Logistics

Relevant Roles

Trade Finance Manager

Import/Export Coordinator

International Business Development Manager

Treasury Manager

Finance Director

Procurement Manager

Supply Chain Manager

Banking Relations Manager

Trade Operations Officer

Documentation Specialist

Compliance Officer

Chief Financial Officer

International Sales Manager

Logistics Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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