DISERTATION INTERNATIONAL PAYMENT PREPARATION THE DOCUMENT PACKAGE AS LETTER OF CREDIT REQUEST

MINISTRY OF TRANSPORT VIETNAM MARITIME UNIVERSITY DEPARTMENT: FOREIGN TRADE DISERTATION INTERNATIONAL PAYMENT TEACHER: LUONG THI KIM OANH STUDENT: VŨ HOÀI NAM - 75949 VŨ XUÂN TIẾN - 76037 CLASS: KTN58CL GROUP: 12-N01 HAIPHONG – 2020 TABLE OF CONTENTS ABBREVIATION INTRODUCTION CHAP 1: APPLICATION FOR LETTER OF CREDIT ISSUANCE 1.1 Fundamental theory on documentary credit 1.1.1 Documentary credit definition 1.1.2 Parties to a Documentary credit 1.1.3 Documentary credit procedure 1.2 Procedure to open a letter of credit 1.2.1 Conditions for opening letter of credit 1.2.2 Procedure to open a letter of credit 1.3 Filling in the application for letter of credit insuarance 10 1.3.1 Explain how to write an application for L/C opening with a specific contract 15 CHAPTER 2: PREPARATION THE DOCUMENT PACKAGE AS LETTER OF CREDIT REQUEST 16 2.1 Introduction to documents used in documentary credit 16 2.1.1 Overview of documents used in documentary credit 16 2.1.2 Bill of exchange 16 2.1.3 Commercial Invoice 17 2.1.4 Bill of lading 17 2.1.5 Insurance Documents 18 2.1.6 Certificate of Origin 18 2.1.7 Packing list 19 2.1.8 Other Documents (if any) 19 2.2 Standart for insuarance and examination of documents under UCP 600 iand ISBP 745 19 2.2.1 UCP 600 19 2.2.2 ISBP 745 25 2.3 Preparing the documents package base on the given LC 27 2.3.1 Bill of lading (B/L) 27 2.3.2 Bill of exchange (B/E) 28 2.3.3 Commercial Invoice 29 2.3.4 Certificate of origin 30 2.3.5 Packing list 31 2.3.6 Certificate of analysis 32 2.3.7 Insurance documents 34 2.3.8 Sale Contract 36 CONCLUSION 39 ABBREVIATION No Abbreviation Meaning L/C Letter of credit DC Documentary credit ICC International Camber of Commerce UCP The Uniform Customs and Practice for Documentary Credits ISBP International Standard Banking Practice for the Examination of Documents under Documentary Credits B/L Bill of lading C/O Certificate of origin GSP Generalized Systems of Prefrences CEPT Common Effective Preferential Tariff 10 ASEAN 11 EB Eximbank 12 Dap Delivery at Place 13 B/E Bill of exchange Association of Southeast Asian Nations INTRODUCTION After integrating into the international economy, Vietnam has achieved certain achievements To achieve this result, we cannot deny the great contributions of foreign trade - the bridge connecting the Vietnamese economy and the world economy The opening up of international trade and investment relations increasingly widely requires the continuous development of relations of international payment, currency and banking services In international trading activities today, there are many payment methods such as money transfer, collection request, opening a debit book, entrustment of collection, guarantee of letters, credit and documents However, only the voucher credit payment method guarantees the highest benefit of both parties Payment by this method will strictly bind the seller and the buyer responsibility Therefore, the international payment course project has detailed details on the documentary credit method, providing useful knowledge for students The project of international payment subject consists of two parts: Chap 1: Application for letter of credit issuance Chap 2: Preparation the document package as L/C request CHAP 1: APPLICATION FOR LETTER OF CREDIT ISSUANCE 1.1 Fundamental theory on documentary credit 1.1.1 Documentary credit definition Documentary credit is an agreement in which a bank (which opens letters of credit) at the request of a customer (Letter of Credit) will pay a certain amount of money to a third person (Beneficiary of letter of credit) or accepts a bill of exchange drawn by a third party within such amount when he presents to the paying bank a set of payment documents in accordance with the provisions set forth in the letter of credit A letter of commercial credit (Letter Credit) or L/C is a legal document in which the bank opening an L/ commits to pay the seller if they present a set of payment documents in accordance with the L/C L/C is formed on the basis of a sales contract After the bank has opened the L/C, the L/C is completely independent from the sale and purchase contract Governing legal documents are Uniform Customs And Practice For Documentary Credit UCP 400, UCP 500, UCP 600 1.1.2 Parties to a Documentary credit There are four main parties to a basic documentary letter of credits transaction: a) Applicant (Buyer/ Importer) Is the Buyer and importer of goods and services +) Obligation: - Write a written request to open L/C in the form with the basis of a contract between the exporter and the importer - Submit the required documents from the bank - Pay fees, open escrow L/C - Receive goods, check the documents presented by the bank, if it matches with the L/C, pay and opposite +) Benefit: - To be committed by the bank to act on his behalf to pay the exporter - To be got credit from the bank in case the deposit is less than 100% - Bank stood out to check the documents presented by the exporter b) Beneficiary (Exporter/ Seller) Is the seller, exporter or the third person designated by the first beneficiary +) Obligation: - Checking the L/C before delivery, if there is any problem in the contents of the L/C, it must be corrected and delivered according to the L/C no delivery without or reasonable L/C - Preparing and presenting documents to the opening bank via the advising bank, the documents must be in accordance with the L/C and entrust the collection bank +) Benefit: - Be committed by the bank to pay (paid by the bank and accepted to pay depending on the type of L/C) - May require the bank to amend the letter of credit through the importer c) Issuing bank (Opening bank) Is the bank representing for the importer, the bank that provides credit to the exporter +) Obligation: - Banks are responsible for opening letters of credit at the request of the importer - After opening the letter of credit, the original must be sent to the exporter through the notification bank - Receive and check the documents presented by the exporter, depending on the test results that the bank will accept to pay If the voucher is consistent with the L/C then money will be paid and opposite +) Benefit: - After paying for the exporter, the bank will present the L/C to claim the importer, if the importer pays the payment, the document will be handed over to the importer On the contrary, the bank has full rights to handle this shipment d) Advising bank (Correspondent bank) Is the bank in the beneficiary country person +) Obligation: - There is no obligation to translate the original L/C but only receive and deliver the original L/C to the beneficiary person (the exporter); - Be obliged to check the authenticity of L/C before transferring; - Receive documents from the exporter to the open bank - When the bank opens pay (accept) or refuse, the advising bank will transfer the money or notify the exporter - In case the bank is authorized to open, the advising bank can check the L/C and pay the exporter +) Benefit: - The bank will be charged fees, exempt from liability in case of force majeure In addition to the above objects, the voucher credit payment method may also have banks such as confirmation banks if it is a confirmation letter of credit; being the acquiring bank if the bank opening letters of credit does not directly pay but appoints another bank to pay the exporter; negotiating bank; transfer bank 1.1.3 Documentary credit procedure Issuing bank Advising bank Applicant (Importer) Thông báo Beneficiary (Exporter) The starting point of the letter of credit process is the agreement upon the sales terms between the exporter and the importer Then they sign a sales contract It is important to stress here that letters of credit are not a sales contract Actually, letters of credit are independent structures from the sale or other contract on which they may be based Therefore, it should be kept in mindthat a good sales contract protects the party, which behaves in goodwill against various kinds of risks After the sales contract has been signed, the importer (applicant) applies for its bank to issue a letter of credit The letter of credit application must be in accordance with the terms of the sales agreement If the importer and its bank reach an agreement together on the working conditions the importer’s bank (issuing bank) issues its letter of credit In case the issuing bank and the exporter (beneficiary) are located at different countries, the issuing bank may use another bank’s services (advising bank) to advise the credit to the beneficiary The advising bank advises the letter of credit to the beneficiary without any undertaking to honor or negotiate The advising bank has two responsibility against to the beneficiary Advising bank’s first responsibility is satisfy itself as to the apparent authenticity of the credit and its second responsibility is to make sure that the advice accuarately reflects the terms and conditions of the credit received The beneficiary should check the conditions of the credit as soon as it is received from the advising bank If some disparities have been detected beneficiary should inform the applicant about these points and demand an amendment If letter of credit conditions seem resonable to the beneficiary then beneficiary starts producing the goods in order to make the shipment on or before the latest shipment date stated in the L/C The beneficiary ships the order according to the terms and conditions stated in the credit When the goods are loaded, the exporter collects the documents, which are requested by the credit and forwards them to the advising bank The advising bank post the documents to the issuing bank on behalf of the beneficiary The issuing bank checks the documents according to the terms and conditions of the credit In addition, the governing rules, which are mostly latest version of the UCP are taken into account If the documents are found complying after the examination the issuing bank honors the payment claim The issuing bank makes payment for the beneficiary via advising bank The documents transmit to the applicant The applicant uses these documents to clear the goods from the customs 9.The applicant also makes the payment paralley for the issuing bank 1.2 Procedure to open a letter of credit 1.2.1 Conditions for opening letter of credit Writing the L/C opening request to send to the bank is an important stage of the documentary credit method because only on the basis of this paper does the bank have a basis to open a letter of credit for the beneficiary exporter and then the exporter delivers the goods Legally, the request for opening L/C is a civil contract, so the content of the document must be complete, accurate, clear, strict, avoiding mistakes that cause misunderstanding and confusion of interests and obligations of the parties involved According to the regulations of the Bank for Foreign Trade of Vietnam, the applicant for L/C opening in our country must: - Write the application form for the import credit opening according to the printed form of the bank Then fill in the required content - Directors of units applying for L/C opening must sign the request for opening If the mandate must comply with the current authorization regulations in our country - The units applying for L/C opening must sign the request for opening If the authorization must follow the current authorization regulations in our country - The units applying for L/C opening must make paper requests for opening credit, together with this paper, the importer must have payment orders: to pay interest on fee for opening L/C ,1 for deposit L/C issue - If the bank agrees to open an L/C for the L/C applicant, the bank manager must sign the last left corner of the L/C application form and specify the number of the opened L/C, date of opening The L/C is on the side of the bank's signature Thus, this request for opening import credit has become a two-party civil contract, specifically it is seen as a special form of contract between the L/C applicant and the bank 1.2.2 Procedure to open a letter of credit Step 1: Preparing documents to open a letter of credit: - For L/C at sight: • Import license (if the goods will be managed by license) • Import quota (if the goods will be managed by quota) • Import contract (copy) - For L/C deferred: • Import license (if any) or import quota • Sales project to payment import • Application for guarantees and commitments to repay (in the form of the Bank) Step 2: Application for opening a letter of credit: After preparing the full set of documents to apply for opening L/C, the importer carries this full set of documents to the bank for opening L/C In this bank, the staff will give the application form for opening L/C to the importer (including at sight form and deferred form) According to the sales contract of their own and the exporter, the importer will fill in the application for letter of credit Notice when appying for the letter of credit: • The basis of filled in the application for L/C is sales contract However, the importer can add some content which take the benefit for the importer • On the application for L/C must be signed by director and chief accountant of the importer If entrusted importing, application for L/C must be fully signture: the signature of the director and chief accountant of entrusted importer and the signature of director and chief accountant of the entrusted company • In order to avoid to fix LC many times which is time-consumming and costly, the importer can fax the L / C application to the exporter for preview and consultation • The importer should review to the original L / C and request an amendment (if necessary) to protect their rights Step 3: Depositing to open L/C: Depositing to open L/C is considered a deposit that the importer uses to commit to paying all the money which the bank has already been in charge of paying the exporter The importer can deposit by cash, company assets or real property,… Now, The bank depends on payment reputation of the enterprise, the relationship between enterprise and bank, the balance of exchange in the enterprise's account, the indebtedness, the feasibility in the project of imported goods of the 2.3 Preparing the documents package base on the given LC 2.3.1 Bill of lading (B/L) 27 2.3.2 Bill of exchange (B/E) No: 2020101801 Hai Phong, January 13, 2020 EXCHANGE FOR USD 125,100.00 At sight of this FIRST of exchange (Second of the same tenor and date being unpaid) Pay to the order ofVietnam Export Import Commercial Joint - StockBank (Eximbank) the sum of USD 125,100.00 (Say: U.S DOLLARS ONE HUNDRED TWENTY FIVE THOUSAND AND ONE HUNDRED DOLLARS) Drawn under BANK OF KAOHSIUNG (BIC) Irrevocable without recourse L/C No 200110C73LU74943 To: BANK OF KAOHSIUNG (BIC) Dated:200110 For and on behalf of ECOBA ENVIRONMENTAL TECHNOLOGY CO.,LTD 28 2.3.3 Commercial Invoice Shipper/exporter: YUAN CHANG INDUSTRY CO., LTD 106 LANE 382 SEC9 XIANGSHAGRD, WU-CHI DIST., TAICHUNG CITY, TAIWAN R.O.C For account & Risks of Mrss: ECOBA ENVIRONMENTAL TECHNOLOGY CO., LTD 5TH FLOOR , UDIC COMPLEX BUILDING, HOANG DAO THUY STR., TRUNG HOA WARD., CAU GIAY DIST., HA NOI, VIETNAM No & date of invoice: 2020110 JAN 10, 2020 Payment: FORM OF DOCUMENTARY CREDIT: IRREVOCABLE Notify party: TO ORDER OF VIETNAM EXPORT IMPORT COMMERCIAL JOINT - STOCKBANK (EXIMBANK) Port of loading: Final destination: TAICHUNG PORT, TAIWWAN ANY PORT(S) IN HAIPHONG, VIETNAM Carrier: ABC Lines Sailing on or board: Marks & No of packages Description of goods BELT FILTER PRESS Remark: Quantity Unit Unit price (USD) Amount (USD) SETS 41,500.00 12.,250.00 LOCAL CHARGE USD 600.00 Total: USD 125,100.00 In firgure: In words: Signature 29 2.3.4 Certificate of origin Certificate of Origin Reference No Goods consigned from (Exporter's business name, address, country) GENERALISED SYSTEM OF PREFERENCES Shipper/exporter: CERTIFICATE OF ORIGIN YUAN CHANG INDUSTRY CO., LTD (Combined declaration and certificate) 106 LANE 382 SEC9 XIANGSHAGRD, WU-CHI DIST., TAICHUNG CITY, TAIWAN R.O.C FORM E Goods consigned to (Consignee's name, address, Issued in country) CHINA TO ORDER OF VIETNAM EXPORT IMPORT COMMERCIAL JOINT - STOCKBANK (EXIMBANK) See Notes overleaf Means of transport and route (as far as known) Vessel’s name LEVI 211 Port of Discharge ANY PORT(S) IN HAIPHONG, VIETNAM FROM TAICHUNG PORT TO ANY PORT(S) IN HAIPHONG, VIETNAM Item number Marks and number of packages For official use www.chinaorigin.gov.cn ฀ ฀ Preferential Treatment Given Preferential Treatment Not Given (Please state reason/s) Number and kind of packages, description of goods Origin criterion (see Notes overleaf) BELT FILTER PRESS 100% Gross weight or other quantity SETS 10 Number and date of invoices 200110 JAN 10, 2020 11 Certification 12 Declaration by the exporter It is hereby certified, on the basis of control carried The undersigned hereby declares that the above out, that the declaration by the exporter is correct details and statements are correct; that all the goods were produced in CHINA (country) and that they comply with the origin requirements specified for those goods in the Generalised System of Preferences for goods exported to VIETNAM (importing country) Place and date, signature and stamp of certifying authority Place and date, signature of authorized signatory 30 2.3.5 Packing list PACKING LIST Date: JANUARY 10, 2020 Seller: YUAN CHANG INDUSTRY CO., LTD Add: 106 LANE 382 SEC9 XIANGSHAGRD, WU-CHI DIST., TAICHUNG CITY, TAIWAN R.O.C Buyer: ECOBA ENVIRONMENTAL TECHNOLOGY CO., LTD Add: 5TH FLOOR , UDIC COMPLEX BUILDING, HOANG DAO THUY STR., TRUNG HOA WARD., CAU GIAY DIST., HA NOI, VIETNAM Contract No: Date on: 20200110 VHN21YH-252 Port of loading: TAICHUNG PORT Vessel's name: LEVI 1 Item Description of goods BELT FILTER PRESS Port of Discharging: Final Destination: ANY PORT(S) IN ANY PORT(S) IN HAIPHONG, HAIPHONG, VIETNAM VIETNAM Sailing on about: No of Bag/pack Net Weight (MT) G.Weight (MT) SETS For Exporter 31 2.3.6 Certificate of analysis Angang Steel Company Limited Certificate of Analysis Prime Hot Rolled Alloy Steel Sheets Certified Estimate of Value1 Uncertainty2 Certified Value1 Estimate of Uncertainty2 Analysis listed as percent by weight MODEL Belt Width(MM) Treating Capacity( m³/hr ) Inlet Consistency (ss0.5~1.5% Dried Sludge(kg/hr) Water Content's Rate(%) Power Driving Motor Consumption (HP) Disposal Agitaor Motor Drum Thickener Lower Collecting Tray For Pressed Filtrate External L Dimensions W (Reference) H (MM) Base Dimension(L1*W1,MM) Reference Weight(Kg) TBH-1500 1500 21~27 143~240 75~84.5 1/2 3/4 1/2 有Yes 2700 2150 2500 2100*1830 1850 The certified value listed is the present best estimate of the true value based on the results of an interlaboratorytesting program The uncertainties listed are based on value judgments of the material inhomogeneity and possible bias in thedetermined analytical values 32 No attempt is made to derive exact statistical measurements of imprecision because several methods were used in the determination of most constituents Data in parentheses are not certified and are provided for information only The requirements of ISO Guide 31 and ISO Guide 35 were generally followed for the preparation of this reference material and certificate of analysis This is a reference material as defined by ISO Guide 30 Certificate Number 1997A-HOA1011 Angang Steel Company Limited Anshan, Liaoning, People's Republic Of China 33 2.3.7 Insurance documents CARGO INSURANCE POLICY Policy No: HN-21111999 2020 Date of issued: JANUARY, 10TH, Base on request and payment of the premium, as agreed, of the Assured, Nan Shan Life Insurance Co., LTD hereby agree to insure the following cargo subject to condition(s) and/or clause(s) of insurance stated in this policy or endorsements if any SCHELUDE Name and address of the Assured: YUAN CHANG INDUSTRY CO., LTD 106 LANE 382 SEC9 XIANGSHAGRD, WU-CHI DIST., TAICHUNG CITY, TAIWAN R.O.C Name of Vessel or Convayance: LEVI 211 Sailing on or about: JANUARY, 30TH, 2020 Voyage at and from: PORT OF LOADING: TAICHUNG PORT, TAIWAN Transhipmen: ALLOWED To: HAIPHONG PORT, VIETNAM Subject – matter insured: BELT FILTER PRESS TOTAL: SETS INVOICE NO: 200110C73LU74943 DATE: JANUARY, 10TH, 2020 110% DAP INVOICE VALUE: USD 137,610.00 Sum isured: USD 137,610.00 (110% INVOICE) Premium: VAT: USD 275,220.00 USD 27,522 Premium rate: 0.2000% Total amount of payment: USD 302,742 34 Clauses, conditions, endorsements and warranties: INSTIUTE CARGO CLAUSES (ALL RISKS) INSTIUTE WAR CLAUSE (CARGO) INSTIUTE STRIKES RIOTS AND CIVIL COMMOTIONS CLAUSES EXCLUDING RUST, OXIDATION, DISCOLOURATION UNLESS DIRECTLY CAUSED BY SINKING, STRANDING, BURNING, COLLISION AND/OR HEAVY WEATHER TERMINATION OF TRANSIT CLAUSE (TERRORISM) In the event of loss or damage which may involve a claim under this issurance, no claim will be amitted unless immediate notice for survey that has been given to and a survey report obtained from or with approval of: NAN SHAN LIFE INSURANCE CO., LTD LTD Nan Shan Life Insurance Corporation of Taipei King Road Zhuang Xinyi District 168 TaiWan Tel: + 886-2-8752-2111 Fax: + 886-2-2502-1999 In case there is no Agents, the Nearest Lloyd’s Agents must be applied for survey Claims if any payable at /in: HANOI, VIETNAM By: NAN SHAN LIFE INSURANCE CO., LTD 35 2.3.8 Sale Contract SALE CONTRACT No 211992020-25299 Date: 10/01/2020 This Contract is prepared by and between: The Buyer: ECOBA ENVIRONMENTAL TECHNOLOGY CO.,LTD Address: 5th Floor, Udic Complex Building, Hoang Dao Thuy Str, Trung Hoa Ward, Cau Giay Dist, Ha Noi, Viet Nam Tel: +82 133 746985 Fax: +82 133 746988 Represented by: Mr Vu Hoai Nam, Director The Seller: YUAN CHANG INDUSTRY CO.,LTD Address: 106 Lane 382 Sec9 Xiangshangrd, Wu-Chi Dist, Taichung City, Taiwan R.O.C Tel: +84 313 748898 Fax: +84 313 748986 Represented by: Mr John Cena, Director The Seller agrees to sell and the Buyer agrees to buy the under mentioned commodity with the following terms and conditions 1) Commodity Commodity Quantity Price per unit (Pieces) (USD/piece) SETS USD 41,500.00 Total Amount BELT FILTER PRESS MODEL: TBH-1500 ( SPECIAL DESIGN) CAPACITY:2127M3/HR USD 124,500.00 MAMUFACTURE: JUAN CHANGTAIWAI 36 LOCAL CHARGE USD 600.00 TOTAL: USD 125,100.00 2) Price term: DAP OCEAN PARK, VIN HOMES, GIA LAM DIST, HA NOI, VIET NAM (Incoterms 2010) 3) Quality: 100% brand-new from Taiwan 4) Insurance: all risk for 110% 5) Shipments: Loading port: Taichung Port, Taiwan Discharging port: Haiphong Port, Vietnam Partial shipments: Not Allowed Transshipment: Allowed 6) Payment term: Time of opening L/C: days after signing contract Documents Required Full set (3/3) of originals Bill of Lading Marked “Freight Prepaid” Commercial Invoices in triplicate originals Packing list in triplicate 1original Insurance Policy covered by the seller all risk for 110% invoice value payable in Viet Nam Certificate of Origin Issued by CCPIT original and copy Certificate of Analysis Issued by Seller or Manufacturer: originals 7) Force majeure: Either Party shall be relieved its obligations and responsibilities under this contract if the performance of this contract is wholly and partially prevented and/or related by the act of God or any other caused beyond the control of either party, such as fires, floods, strikes, lock out, riots or civil commotion, war and act of Government Either party shall promtly give the notice to other party within14 days from date of happening of any force majeure event effecting its obligations under this contract along with documentary evidence such as certificate of Chamber of Commerce of any other competent authority connected with the clause 37 8) Arbitration: All disputes may arise between both parties shall be solved amicably In the case of faliure of such procedure, the dispute will be settled by Vietnam Internationall Arbitration Center The decision of Arbitration shall be final and blinding of both partied Arbitration fees will be born by the losing party 9) General Conditions: - Any amendment or supplement of this Contract shall be valid only they are made in writing and confirmed by both parties - All taxes, duties, customs fees, banking fees levied inside of Vietnam shall be at Buyer’s Account Other term and condition follow Incoterm 2010 THE BUYER THE SELLER 38 CONCLUSION It can be said that international payment is the last stage of economic and trade transactions of actors on a world scale Economic integration has just started and will be further developed and expanded so international economic transactions and international trade will change a lot and will develop in a variety of forms, sizes and depths Through practicing the transactions related to the documentary credit payment method as direct related parties in the payment process, I have learned a lot more about the voucher credit payment method and the importance its weight And through that, I have also drawn a lot of experience in the process of performing payment operations We have completed the above International Payment subject project with the guidance of Ms Luong Thi Kim Oanh However, in the process of applying, due to inexperience, there are still many shortcomings, I hope teachers help and teach us more Sincerely thanks! 39 ECONOMICS FACULTY INTERNATIONAL BUSINESS DIVISION DISERTATION INTERNATIONAL PAYMENT CONTENTS INTRODUCTION ABBREVIATION CHAPTER APPLICATION FOR LETTER OF CREDIT ISSUANCE 1.1 Fundamental theory on documentary credit 1.1.1 Documentary credit definition 1.1.2 Parties to a documentary credit 1.1.3 Documentary credit procedure 1.2 Procedure to open a letter of credit 1.3 Filling in the application for letter of credit issuance CHAPTER PREPARATION THE DOCUMENT PACKAGE AS L/C REQUEST 2.1 Introduction to documents used in documentary credit 2.1.1 Overview of documents used in documentary credit 2.1.2 Bill of exchange 2.1.3 Commercial invoice 2.1.4 Bill of lading 2.1.5 Insurance documents 2.1.6 Certificate of origin 2.2 Standard for issuance and examination of documents under UCP 600 and ISBP 7452.3 Preparing the documents package base on the given L/C 2.3 Prepairing the documents package base on the given L/C 40 CONCLUSION REFERENCES Assignment start date: 5/11/2020 Assignment due date: 16/12/2020 Student Lecturer Luong Thi Kim Oanh Vu Hoai Nam, Vu Xuan Tien HAIPHONG, 2020 41 ... DOCUMENT PACKAGE AS LETTER OF CREDIT REQUEST 2.1 Introduction to documents used in documentary credit 2.1.1 Overview of documents used in documentary credit There are commonly types of documents:... presents to the paying bank a set of payment documents in accordance with the provisions set forth in the letter of credit A letter of commercial credit (Letter Credit) or L/C is a legal document. .. sales contract of their own and the exporter, the importer will fill in the application for letter of credit Notice when appying for the letter of credit: • The basis of filled in the application