Irrevocable Documentary Credit Application

Application for* _________________ Irrevocable Documentary Credit issued by :** ___________ ______________ Date
* Confirmed, Revolving, Transferable, Unconfirmed, Standby **Swift or Mail

To : Trade Services
FirstRand Bank Limited
TCG Financial Centre, 4th Floor,
C- 53, G – Block, Bandra Kurla Complex,
Mumbai – 400 051.

Please refer to page 4 for guidelines for completion. Codes : M = Mandatory; M/O = Mandatory and/or optional; O - Optional

1. Date and Place of expiry 31D M : Date ______________ Place ___________________________________________

2. Applicant 50 M : Name ______________________________________________________________
M : Address ____________________________________________________________
: ___________________________________________________________________

: Tel. No. __________________________ Fax No. ___________________________

: Email ______________________________________________________________
3. Beneficiary 59 M : Name ______________________________________________________________
M : Address ____________________________________________________________
: ___________________________________________________________________
: ___________________________________________________________________
: Tel. No. __________________________ Email _____________________________
4. Advising Bank O : ___________________________________________________________________
: ___________________________________________________________________
5. Currency and Amount 32B M : Currency _______________ Amount ______________________________
M : (in words) __________________________________________________________
: ___________________________________________________________________
Percentage Amount Tolerance 39A O : + ____________________________% / ? _______________________________%

Credit Available With 41A M: q Any Bank OR __________________________________________________

6. Payment Terms 41A M : By Sight Payment q By Deferred Payment q

By Negotiation q By Acceptance q
Deferred Payment Details 42P O : At __________________ days after ______________________________________

By Mixed Payment 42M O : q_________________________________________________________________

By Acceptance (Draft Required) 42C O : Drawn at __________ days from Shipment Date q Sight q
7. Partial Amount 43P O : Allowed q Not Allowed q
8. Transhipment 43T O : Allowed q Not Allowed q
9. Place of taking in charge /
Dispatch from / Place of receipt 44A O : ___________________________________________________________________

Port of Loading / Airport of Departure 44E O : ___________________________________________________________________

Port of Discharge / Airport of Destination 44F O : ___________________________________________________________________

Place of Final Distination / For 44B O : ___________________________________________________________________

transportation to / Place of delivery

Latest shipment date 44C O : _________________

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10. Brief description of merchandise /
Services 45A M : ___________________________________________________________________

___________________________ ITC HS Code ____________________________

Shipment terms as per incoterms 2010 : (e.g. FOB or CIF, etc _______________location _____________________________
11. Document required 46A M:
11a. Invoice M : Commercial Invoice in _____________ oiriginals and _______ copies issued by.
___________________________________________________________________
confirming goods in accordance with pro-forma/indent/order/contract
dated __________________________ number ____________________________

11b. Transport Document M/O : q Full Set q Full Set Less__________ of clean’on board’Marine Bills of Lading
to order of FirstRand Bank India / blank endorsed marked

q Freight Prepaid q Freight Collect

: Notify _____________________________________________________________

___________________________________________________________________

M/O : q Airway Bill Consigned to FirstRand Bank India / applicant maked

q Freight Prepaid q Freight Collect

O : q Other __________________________________________________________
_______________________________________________________________
11c. Insurance M :

Beneficiary : q Original insurance policy of certificate plus ______copies blank endorsed for the
invoice value plus_____% covering institute cargo clause A, Including war risks,
strikes, riots and civil commotions. Claims payable in India.
Any other risk _____________________________

11d. Other Documents O : q Certificate of origin in _______originals and __________copies issued by

showing origins of goods as ________________________________________

O : q Packing list in ______________originals and __________copies issued by

stating __________________________________________________________

O : q W eight certificate in __________originals and ___________copies issued by

stating __________________________________________________________

O : q Beneficiary’s certificate confirming that _________________________________

O : q Other ___________________________________________________________

12. Additional Conditions 47A O :q _______________________________________________________________

13. Special instructions if any O :q _______________________________________________________________

14. Overseas Bank’s Charges 71B M : All bank charges outside India are for account of the:

: q Beneficiary q Applicant
: Please debit my/our Account no. ____________ for your charges and margin for the
issuance of this Letter of Credit.
: Other ______________________________________________________________
15. Period allowed for presentation of 48 O: _______________________________________________________________
documents

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16. Confirmation 49 M: q Required q Not required
: Confirmation charges are for the account of the:
(if left blank, charges will be for the account of the beneficiary.)

q Applicant q Beneficiay
17. Advice of Drawings : Telegraphic advice with documents to follow by courier.

18. Import Permit M : q Required and has been issued and held available for inspection by the bank.
Import Permit number: ______________________________________
q Not required

q We confirm that the goods are not on the Negative list of goods as per extant
Import Export Policy.

This Documentary Credit is subject to Uniform Customs and Practice for the Documentary Credits, 2007 revision, ICC Publication no. 600, Uniform rules
for Bank to Bank Reimbursement under Documentary Credits, ICC Publication No. 725 and amendments / modifications Issued from time to
time,interpretations or clarifications thereof including avoidance of doubt, decision dated 6th April 1998 issued by ICC regarding the impact of the EURO
on monetary obligation relating to transactions involving ICC rules.
I/We agree to be bound by the continuing commercial agreement executed and the General conditions appearing therein.
I/We hereby undertake to submit Exchange control Copy of the Bill of Entry / Postal Wrapper / Courier Wrapper as per the prevailing FEMA guidelines.
I/We request to issue for my / our account irrevocable documentary credit in the form used by yourselves as above in terms of and subject to my/our
signed general application for documentary credits, which conditions are binding upon me/us.

For and on behald of _______________________________________________________________________________________________

Authorised Signature Authorised Signature

Customer Account Number

Enclosures : q FEMA Declaration

q Purchase orders / Proforma Invoice

q Import Licence (If applicable)

q Insurance Certificate (If to the A/C of applicant)

Beneficiary’s Banking Details

For Office use only

Advanced aspect confirmed

Signatures verified

Cash security held for _________________

Manager’s Signature & Branch Stamp

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Notes:

1. Date and Place of expiry : The date should be the last date on which the beneficiary will be permitted to present documents.

2. Applicant : Your full name and address to be furnished.

3. Beneficiary : The full name and address of the supplier to be furnished.

4. Advising Bank : Provide full name and details of the Advising Bank if required.

5. Currency & Amount : The currency and amount as quoted on the pro-forma/indent/order/contract for the full cost of goods.
If used, the words approx., about of similar expressions are to be construed as 10% tolerance. Any tolerance
must be specified.

6. Payment Terms : Sight.... The beneficiary is to be paid at sight, no drafts are required.
Deferred Payment.... The beneficiary is to be paid at a future date, e.g. 180 days from shipment date and no
drafts are required.
Negotiation.... The beneficiary will only be paid after receipt of complying documents by ourselves.
Acceptance.... The beneficiary is to be paid at a future date, e.g. 180 days from shipment date and no drafts
are required.
Mixed Payment.... Specify the mixed payment terms for example: 10% of L/C amount payable at sight and
90% of the L/C amount payable by deferrend payment at 60 days after shipment date.

7. Partial Shipment : Are the goods required in one or more shipments? Should neither block be marked, part-shipment will be
allowed.

8. Transhipment : Do you wish transhipment to be allowed? should neither block be marked, transhipment will be permitted.
(In need refer to your shipper/forwarding agent).

9. Shipped/Consignee : (In need refer to your shipper/forwarding agent).

Place of taking in charge/Dispatch frm/Place of receipt
Port of loading /Airport of departure
Port of Discharge/Airport of destination
Place of final destination /for transportation to/Place of delivery
Latest Shipment Date.... The latest expected shipment date as arranged between you and the selller

10. Brief Description of Merchandise : Be short and concise as banks dal in documents and not in goods.
Shipment Terms... The terms of shipment that the Seller has undertaken to provide. (e.g. ex-works, CIF etc)

11. Documents required :

11a. Invoice The document providing the details of the shipment amount plus the description of merchandise and your
confirmation of goods supplied in terms of the original agreement. Please state number of copies required.

11b. Transport Document Where one or more negotiable bills of lading are to be forwarded to a specified party the set will become full
set less 1 or 2 (See Beneficiaries Certificate).

11c. Insurance When shipment terms are CIF of CIP an insurance policy or certificate should be called for as the seller has
undertaken to provide insurance cover. The insurance covered should be least 110% of the CIF or CIP value
of the goods. If transhipment is to be allowed, a transhipment clause must be called for.

11d. Other Documents (Please state number of copies required, e.g. duplicate, etc)
Certificate of origin... Required for clearing of certain goods.
Packing List... If required by your company.
Weight Certificate... If required by your company.
Beneficiary’s Certificate... This would be required to ensure that the seller has complied with certain
conditions that the banks would be unable to ascertain from the documentation or the credit e.g. that one set
of negotiable documents had been sent to a specified party.
Other... Could be a certificate of analysis, health, or any other document relevant to your line of business.

12. Additional Conditions : Other conditions which the seller has to meet which have not been previously mentioned (which must be
evidenced by the documents in order for Banks to check).

13. Special Instructions : Any special instructions you wish to give us. May also be used as an overflow for additional conditions.

14. Overseas Bank Charges : For whose account are the overseas bank charges? Should neither block be marked the charges will
automatically be for your account
Other... Specify if there is a mixed charge structure.
Please mote that our charges are for your account unless specifically arranged between yourselves and the
seller. In the event of any charges under this credit being irrecoverable, these will then be for your account

15. Period allowed for presentation : Relates to the number of days the seller is given to present documents to bank where the L/C expires.
The lesser the number of days the less likely you are to be faced with demurrage and other charges. The
number of days mentioned here would also then be the difference between shipment and expiry dates
(normally 21 days)

16. Confirmation : If Required.... We could request our correspondent bank to guarantee payment provided documents are in
order. This will incur additional overseas bank charges.

17. Advice of Drawings : Telegraphic advice with documents to follow by courier.

18. Import Permit : Specify whether an import permit is required depending on the type of goods.

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 Terms Pertaining To Issue of Irrevocable Documentary Credit
Requested By The Applicant

The Applicant and the Bank agree as follows:

1. Definition. In this agreement

“Applicant” means the party signing the Application as defined below;

“Applicable Law” means any national, provincial or local law, ordinance, regulation, rule, code,
administrative order, requirement or rule of law of India;

“Application” means the application for irrevocable Documentary Credit made to the Bank by the
Applicant, which if accepted by the bank as its sole discretion, shall be read in conjunction with these
Terms & Condition, and shall together from part of same agreement;

“Bank” means FirstRand Bank Limited-India

“Beneficiary” means the person designated in the Application in favour of which the Applicant has
requested the bank to issue the Credit and, if the Credit is designated as transferable, each person to
whom the beneficiary transfer the Credit or part thereof;

“Branch” means the branch or office designated in the Application;

“LC” Or “Credit” means the irrevocable documentary credit made/issue by the Bank upon acceptance
by it of the Application of the Applicant, and, includes any irrevocable documentary credit issued upon
transfer of the LC, if the LC is transferable;

“Force Majeure” means:

i. fire, flood, earthquake, elements of nature or acts of god,

ii. acts of war, terrorism, riot, civil disorder, rebellion, strike, lockout or other labour disruption
iii. equipment, system, communication, power or transmission disruption, failure, malfunction or
error,
iv. any measure taken by any actual or purported domestic or foreign government or other
authority that prohibits, restrict, taxes, confiscated, withholds or otherwise places an embargo
on or interferes in whole or in part with any Credit request or issue under this Agreement; or any
other similar cause beyond the reasonable control of the Bank;

“Foreign Currency” means any currency other than Indian Rupees;

“Local Currency” means Indian Rupees;

“Person” means any include any individual, company, association, partnership, business trust, joint
stock company, joint venture, trust, estate or other entity or organization of whatever nature;

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 The expressions “herein”, ”hereof”, ”herewith”, “this Agreement” and “this Application” refer to the
Application for Irrevocable Documentary Credit and to these Terms.

2. The Applicant hereby irrevocably authorize the Bank to pay forthwith any sum required to be paid by the
Bank to the Beneficiary to honour the LC; provided that the payment made by the Bank honour the LC shall not
exceed the maximum amount mentioned in the Application (after considering the tolerance percentage) and shall
always made in the currency(s) specified in the Application. For the purpose of honouring the LC, the Bank shall not
be required to refer to or seek any confirmation or verification whatsoever from the Applicant. The Bank agrees that
payment to honour the LC shall always be made to the credit of the person mention in the Application, or where
the credit there under is specified as transferable, to the transferee thereof.

3. The Applicant agree to pay forthwith, whenever so demanded, to the Bank all dues in relation to the LC,
including the moneys paid by the Bank to honour the LC, the agreed rate of commission payable to the Bank, any
expenses incurred by the Bank for the purpose of the present transaction, etc. Any moneys paid by the Bank
hereunder in foreign currency, shall be repaid by the Applicant at the currency selling rates (of the Bank)
existing on the date on which the Bank makes payment for such amount(s) or on the date on which the
Applicant is required to make payment to the Bank hereunder, whichever is higher. The Applicant shall be liable
to pay interest to Bank at such rates as determined by the Bank on case-to-case basis in case of any delay in
payments. The Bank may also book forward contracts on the specific written request by the Applicant to the
Bank in this regards. All expenses in this regards shall be to the account of the Applicant, and the Applicant
shall bear the risk attached to such transaction.

4. Where the Applicant has a current account with the Bank, the Applicant hereby irrevocably authorized the Bank
to debit all sums payable hereunder to the said account of the Applicant with the Bank. It is agreed that such
debit to the account of the Applicant by the Bank shall be deemed to be a valid demand for payment under
Clause 3 hereinbefore.

5. The Applicant agree to pay all charges and expenses to be incurred by the Bank or reimburse the Bank for such
charges and expenses already incurred by it in relation to the LC, as also any charges and expenses of other
person (including Banks) or paid or to be paid by the Bank owing to the failure of the Beneficiary to pay such
charges and expenses.

6. Bank’s Security: The Applicant agrees and acknowledge that all documents referred to in the Application which
may come into the possession of the Bank, the goods mention therein and any realizations therefrom are hereby
pledged and assigned to the Bank to secure all the dues payable by the Applicant to the Bank hereunder. The
Bank shall have the right to dispose of the goods or documents pertaining thereto in such manner as the Bank
shall consider fit to recover the aforementioned dues , and the Applicant agrees to accept the Bank’s account of
all realizations made therefrom and any expenses of whatsoever nature incurred by the Bank in the progress

7. The Applicant agrees to keep the aforementioned goods insured, with the Bank being made a co-loss payee.
Such insurance shall always cover all the usual risks to which the goods may be subject. Further, the Applicant
agrees to deliver to the Bank the relevant insurance policy(s) as when called upon to do so by the Bank.

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8. Indemnification : The Applicant shall indemnify and keep the Bank harmless from all losses, damages,
costs, demands, claims, expenses and other consequences Incurred, suffered or sustained by the Bank
by entering into the present transaction (including enforcing the aforesaid security); provided that any
such losses, expenses, etc. so sustained or incurred or suffered by the Bank shall not be resulting from Its
own gross negligence or wilful misconduct and shall not be required to so indemnified by the Applicant.

9. All communications sent by the Bank at the address mentioned in the Application (or any changed
address duly intimated to the Bank by the Applicant in writing) shall be deemed to have been duly served
on the Applicant.

10. Rights Conferred On Bank Are Additional : The rights and powers conferred upon the Bank hereby are
in addition and without prejudice to any other rights which the Bank may now or hereafter enjoy and the
security provided hereby is in addition to and without prejudice to any security of any kind which the Bank
may now or hereafter hold for the account of the Applicant. The Applicant agrees to provide the Bank with
such further security as the Bank may require from time to time for the Applicant’s obligations hereunder.

11. Application and Benefit : The provisions hereof shall apply to the Credit and any transfer thereof as
varied from time to time with the consent of the Applicant and other requisite parties and this Agreement
shall be binding upon the Applicant and the Bank and their respective heirs, executors, administrators,
successors and assigns.

12. Complying Presentation : Notwithstanding any provision in UCP to the contrary, unless the Application
hereof expressly provides otherwise, the Bank may accept as complying with the terms of the Credit any
documents or instruments required by the Credit to be compieted, signed, presented or delivered by a
Beneficiary which has or have been completed, signed, presented or delivered by a receiver, trustee In
bankruptcy, assignee for the benefit of creditors, secured party or other like person believed in good faith
by the Bank to be lawfully entitled to the Beneficiary in the Credit and the Bank may make payments under
the Credit to such person. The provisions of this paragraph 12 are inserted for the sole benefit of the
Bank and may not be relied upon by any other person whatsoever.

13. Compliance with government regulations : The Applicant shall comply with any and all domestic and
foreign governmental requirements in regard to the present transaction and the related shipment of
goods, and the Bank is hereby released from all liability or responsibility in connection therewith.

14. The Bank shall not be liable for any error, failure or delay in performance of the Bank’s obligations under
this Agreement caused directly or indirectly by any event in the nature of Force Majeure.

15. I/we agree to procure promptly any necessary import and/ or export or other license for the import, export
or shipping of the goods and to comply with all foreign and domestic government regulations in regard to
the shipment of the goods or the financing thereof and to furnish such certificates in that respect as you
may at any time require, and to keep the goods adequately covered by insurance, in companies
satisfactory to you at your opinion and to furnish you if demanded with evidence of acceptance by the
insurance or such assignment. Goods adequately covered by insurance, in companies satisfactory to you
at your opinion and to furnish you if demanded with evidence of acceptance by the insurance or such
assignment.

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16. We hereby authorize you to crystallize the bill in case if the payment is not made within 10 days
from the date of receipt of documents or due date whichever is earlier.

17. We also undertake to submit Exchange Control Copy of Bill of Entry within 90 days from the date of
payment in case of Sight Bills or before due date in case of usance Bills received under this LC.

18. Governing Law and Jurisdiction: This Agreement shall be governed by and construed in
accordance with the laws of India, and any disputed arising here from shall be subject to the exclusive
jurisdiction of the Courts at Mumbai.