������Ƶ

The Fronting Letter of Credit is a crucial document in international trade finance, particularly relevant when certain banks need to utilize the services of other banks to issue Letters of Credit. This arrangement is common when the instructing bank lacks direct relationships in certain jurisdictions or faces regulatory limitations. Under Indian law, these documents must comply with RBI guidelines, FEMA regulations, and the Banking Regulation Act, while also adhering to international UCP 600 standards. The document specifies all payment terms, conditions, documentary requirements, and the roles and responsibilities of each party involved. It's particularly useful in scenarios where Indian companies engage in international trade but their primary bank needs another bank's assistance to facilitate the transaction.

1. Issuing Bank Details: Complete details of the fronting bank issuing the LC including name, branch, SWIFT code

2. Reference Number: Unique LC reference number and any related banking references

3. Date of Issue: Date when the LC is issued

4. Beneficiary Details: Complete name and address of the beneficiary (seller/exporter)

5. Applicant Details: Complete name and address of the applicant (buyer/importer)

6. Currency and Amount: Currency and amount of the LC in both figures and words

7. Expiry Date and Place: Date and location where the LC expires

8. Documentary Requirements: Detailed list of required documents for LC negotiation

9. Goods/Services Description: Detailed description of the underlying goods or services

10. Shipment Terms: Details of shipment including latest shipment date and partial shipments status

11. Payment Terms: Specific conditions and timing of payment

12. Fronting Arrangement: Details of the arrangement between the fronting bank and the instructing/reimbursing bank