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Advised Letter Of Credit for Hong Kong

Advised Letter Of Credit Template for Hong Kong

An Advised Letter of Credit is a formal banking instrument used in international trade, governed by Hong Kong law and international banking practices (UCP 600). It represents a notification from an advising bank to the beneficiary, confirming the authenticity of a letter of credit issued by another bank. The document provides assurance to the seller (beneficiary) that a legitimate letter of credit has been issued, while incorporating Hong Kong's robust financial regulatory framework and maintaining compliance with international trade finance standards.

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What is a Advised Letter Of Credit?

The Advised Letter of Credit serves as a crucial document in international trade finance, particularly within Hong Kong's sophisticated banking system. It is used when a bank (the advising bank) receives a letter of credit from an issuing bank and verifies its authenticity before notifying the beneficiary. The document provides essential details including the credit amount, expiry date, required documents, and shipping terms, while operating under Hong Kong's legal framework and international banking practices. The Advised Letter of Credit is particularly important for businesses engaged in cross-border trade, offering security and assurance to exporters while facilitating smooth international commerce.

What sections should be included in a Advised Letter Of Credit?

1. Letter Head: Advising bank's letterhead, including bank's name, address, and contact details

2. Reference Information: LC number, date, and any other reference numbers

3. Recipient Details: Beneficiary's name and address

4. LC Advice Introduction: Statement confirming the receipt and authenticity of the LC from the issuing bank

5. Issuing Bank Details: Name and address of the issuing bank

6. LC Key Terms: Amount, currency, expiry date, and place of expiry

7. Applicant Details: Name and address of the LC applicant

8. Beneficiary Details: Complete details of the beneficiary

9. Available With/By: Terms of availability and method of payment

10. Document Requirements: List of required documents and their specifications

11. Goods/Services Description: Description of the underlying transaction

12. Special Conditions: Any additional terms, conditions, or instructions

13. Bank Disclaimer: Standard advised LC disclaimer and limitation of liability

14. Authentication: Authorized signatures and authentication details

What sections are optional to include in a Advised Letter Of Credit?

1. Transfer Terms: Include when the LC is transferable, specifying transfer conditions

2. Confirmation Statement: Include when the LC is confirmed by the advising bank

3. Reimbursement Instructions: Include when specific reimbursement arrangements are required

4. Draft Requirements: Include when bills of exchange are required

5. Shipping Instructions: Include when specific shipping arrangements or requirements exist

6. Pre-advice Reference: Include when referring to any pre-advice of the LC

7. Amendment Details: Include when advising amendments to an existing LC

What schedules should be included in a Advised Letter Of Credit?

1. Document Checklist: Detailed checklist of required documents with specific format requirements

2. Fee Schedule: Details of applicable banking charges and fees

3. Authentication Instructions: Specific instructions for document authentication and verification

4. Bank Contact Details: List of relevant department contacts for queries and submissions

5. SWIFT Message Copy: Copy of the original SWIFT message from the issuing bank

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

Hong Kong

Publisher

Ƶ

Document Type

Letter of Credit

Cost

Free to use
Relevant legal definitions








































Clauses
























Relevant Industries

Banking and Financial Services

International Trade

Import/Export

Manufacturing

Wholesale and Distribution

Commodities Trading

Shipping and Logistics

Agriculture and Food

Textiles and Garments

Electronics and Technology

Raw Materials and Mining

Energy and Utilities

Relevant Teams

Trade Finance

International Banking

Corporate Banking

Treasury

Legal and Compliance

Risk Management

Operations

Documentary Credits

Global Transaction Services

Export Finance

Trade Operations

Relevant Roles

Trade Finance Manager

Letter of Credit Specialist

International Banking Officer

Export Finance Manager

Trade Operations Manager

Documentary Credits Officer

Chief Financial Officer

Treasury Manager

International Trade Specialist

Banking Relationship Manager

Compliance Officer

Trade Finance Director

Export Manager

Import Manager

Finance Controller

Banking Operations Manager

Industries








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