The Application For Letter of Credit is a fundamental document used in international trade transactions under Hong Kong jurisdiction. It is typically employed when a buyer needs to provide secure payment assurance to an overseas seller, initiating the process of establishing a Letter of Credit facility with a bank. The application must comply with Hong Kong's Banking Ordinance (Cap. 155) and international banking practices, particularly the UCP 600 guidelines. The document captures essential details including the parties involved, transaction terms, shipping requirements, and document specifications. This application serves as the primary reference point for the issuing bank to create the actual Letter of Credit and forms part of the contractual relationship between the applicant and the bank. It's particularly crucial in Hong Kong's role as a major international trading hub, where Letters of Credit are frequently used to facilitate secure cross-border transactions.

1. Applicant Details: Full legal name, address, and contact information of the party requesting the letter of credit

2. Beneficiary Details: Complete name and address of the party in whose favor the letter of credit is to be issued

3. Banking Details: Issuing bank details, advising bank details (if applicable), and form of credit (irrevocable/transferable)

4. Credit Amount and Currency: Specification of the amount and currency of the letter of credit, including any tolerance levels

5. Expiry Details: Expiry date and place of the letter of credit

6. Shipment Terms: Latest shipment date, partial shipments/transhipment permissions, and shipment route details

7. Goods Description: Detailed description of the goods/services being traded, including quantity and unit price

8. Document Requirements: List of required documents (commercial invoice, transport documents, insurance documents, etc.)

9. Payment Terms: Payment conditions, sight/usance period, and negotiation terms

10. Charges: Specification of which party bears various banking charges