Irrevocable Transferable Lc Template for Indonesia

The Irrevocable Transferable LC is a crucial financial instrument in international trade transactions, particularly within the Indonesian legal framework. It serves as a secure payment method where the issuing bank makes an irrevocable commitment to pay the beneficiary upon presentation of compliant documents. The transferable nature of this LC allows the first beneficiary (typically a middleman or trader) to transfer their rights to a second beneficiary (usually the actual supplier), facilitating complex trade transactions involving multiple parties. This document is essential when dealing with Indonesian imports/exports and must comply with both Bank Indonesia regulations and international banking practices (UCP 600). The LC contains detailed specifications about payment terms, document requirements, shipment conditions, and transfer mechanisms, providing security to all parties involved in the transaction. It's particularly valuable in transactions where the original beneficiary acts as an intermediary and needs to transfer the credit to the actual supplier of goods or services.

1. LC Number and Reference: Unique identification number and reference details of the LC

2. Date of Issuance: The official date when the LC is issued

3. Applicant Details: Complete name, address, and contact information of the party requesting the LC (usually the buyer)

4. Beneficiary Details: Complete name, address, and contact information of the party in whose favor the LC is issued (usually the seller)

5. Issuing Bank Details: Complete name, address, and contact information of the bank issuing the LC

6. Amount and Currency: The maximum amount and currency of the LC, written in both figures and words

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

8. Transferability Statement: Clear statement that the LC is transferable and the terms of transfer

9. Available With/By: Specification of how and where the LC is available (payment, acceptance, or negotiation)

10. Partial Shipments/Transhipment: Whether partial shipments or transhipment is allowed or prohibited

11. Required Documents: Detailed list of all documents required for presentation

12. Shipment Terms: Details of shipment including latest shipment date and destination

13. Description of Goods/Services: Precise description of the goods or services covered by the LC

14. Special Conditions: Any additional terms and conditions specific to this LC

15. Governing Law Statement: Statement that the LC is subject to Indonesian law and UCP 600