The Import Letter of Credit serves as a fundamental tool in international trade finance, providing security and payment assurance to parties involved in cross-border transactions. When a Canadian company needs to import goods from overseas suppliers, an Import Letter of Credit issued by a Canadian bank offers a secure payment mechanism that protects both the importer and exporter. The document is governed by Canadian federal laws, including the Bank Act and Bills of Exchange Act, while also adhering to international standards such as the UCP 600. It contains detailed specifications about the transaction, including payment terms, shipping requirements, and document presentation conditions. This instrument is particularly valuable when dealing with new trading partners or in situations where parties seek additional payment security in international transactions.

1. Letter of Credit Number: Unique identification number assigned by the issuing bank

2. Date of Issue: The date when the Letter of Credit is issued

3. Applicant Details: Full name and address of the importer/buyer requesting the Letter of Credit

4. Beneficiary Details: Full name and address of the exporter/seller who will receive payment

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

6. Amount and Currency: The maximum amount and currency of the Letter of Credit

7. Expiry Date and Place: The date and location where the Letter of Credit expires

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

9. Partial Shipments: Whether partial shipments are allowed or prohibited

10. Transhipment: Whether transhipment is allowed or prohibited

11. Port of Loading/Airport of Departure: Specified location where goods are to be loaded

12. Port of Discharge/Airport of Destination: Specified location where goods are to be discharged

13. Latest Date of Shipment: Final date by which shipment must be made

14. Description of Goods: Brief description of the goods being traded

15. Required Documents: List of documents required for presentation

16. Additional Conditions: Any special conditions or requirements

17. Charges: Specification of which party bears which bank charges