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The following information is intended as guidance in laying out an LC for opening with ARN Trading Ltd t/a AHR International. We appreciate that you may have your own internal policies and documentary requirements but we must stress that Keeping an L/C simple and flexible is for the benefit of both parties. We have made suggestions in grey and a associated reason for this in green.

• All Letters of Credits (here by refered to as L/C's) must be irrevocable documentary letters of credit subject to UCP500 (1993).

  This is the international reference for L/C's.

• All L/C values must be in GB sterling unless otherwise agreed in writting.

  This removes the cost of currency conversion.

• All L/C's are at sight unless otherwise agreed.

  We do not give credit terms on this type of transaction.

• All L/C's must be capable of being drawn on any bank by negotiation.

  This gives the flexability to use any bank to draw the L/C.

• The L/C date of expiry must be at least 3 months after expected delivery/shipment of goods.

  Should there be a manufacturer shortage, lost goods or act of god beyond our control 3 months will allow for most unexpected problems to be resolved.

• Partial shipments must be permited.

  Although AHR will not partial ship without a customers agreement. If you prohibit partial shipments then your bank will charge you to amend the L/C for reasons stated in the point above.

• Trans-shipments must be permited.

  Although AHR will not trans-ship goods without a customers agreement, it may be necessary to facilitate delivery of goods. If you prohibit transshipments then your bank will charge you to amend the L/C for reasons stated in the point above.

• Shipment from - If used please state "ANY UK PORT".

  We will always choose the most appropriate port but this gives us the flexability to change port locations should there be a change in circumstance beyond our control such as labour strikes etc.

• Goods Description should be as brief as possible.

  Many clients use HR's pro-forma invoice as a means of reference for the description of the goods we will supply.

• Delivery Terms - Please USE INCO terms only.

  INCO terms are by their nature internaitonally recognised and remove ambiguity when describing the various terms of delivery possible.

• Documents required. We normally recommend the following.

  • 1 signed commercial invoice and 2 signed copies
  • 1 signed packing list and 2 signed copies
  • 1 set of full clean on board bills of lading or AWB's (Air Way Bills)

  
  Any extra documentation such as certificates of conformance or certificates of origin will be chargeable at AHR's discretion.

• Date of last presentation of documents should be 21 days after shipment.

  This gives time for delays in receiving AWB's or Bills of Lading. It also allows for the possability of lost post.

• All charges are for the applicant.

  AHR has absolutely no control over the charges that can be levied or who levies them. As the supplier, AHR cannot be financially responsible for these charges

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