L/C meaning Letter of Credit. Letter of credit is done between applicant to beneficiary. This term is used in commercial department. Letter of Credit -L/C set up is the work of commercial section in garment factory. A commercial officer should have clear concept on letter of credit. It is also called Documentary Credit is a widely used term to make payment secure in domestic and international trade. That’s why Letter of Credit- L/C is very important in apparel manufacturing. We are showing a flowchart here to show the process of L/C
Flow Chart of L/C Letter of Credit
Buyer and Garments manufacturer make sales contract after agreement.
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Buyer send letter of credit to buyer issuing bank
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Issuing bank send prepared letter of credit to advising bank
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Advising bank send letter of credit to garments manufacturer
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Garments manufacturer make shipment to buyer
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Garments manufacturer prepare all document to advising bank
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Advising bank send all prepared document to buyer
Flow Chart of L/C Letter of Credit 1
Requirement of garments material with specification
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To inform about requirement to departmental head
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Management will search for the actual requirement
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Various company will response with those specification
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Then the management select some offers
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Then discussion will be among two management
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Management will sign the agreement with the selected company / agencies
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Then negotiation will take place among management / agencies
We sale automated work order management software. To collect please contact us [email protected]
Work Order
Date : December 3, 2018 Delivery date : December 10, 2018
To : Auto Group Buyer : CELIO
Attention : Mr. Masim P O Number : 201665851, 29987381
. Style : W04 KKNITWEAR-125
Subject: Work order for “ Carton with T & B”
Dear Mr. Mojibor,
This is to inform you that we have been pleased to place work order for “Carton with Top & Bottom’ for above style subject to mentioned below terms and condition.
SL
SIZE
REFERENCE NUMBER
MEASUREMENT
CTN QTY
TOP/ BOTTOM
REMARKS
1
2-3YEARS
1
L 42 X W 39 X H 35 CM
200 PCS
400 PCS
CARTON MUST BE 7 PLY & TOP BOTTOM 3 PLY
2
3-4YEARS
2
200 PCS
400 PCS
3
4-5YEARS
3
L 47 X W 41 X H 35 CM
182 PCS
364 PCS
4
5-6YEARS
4
244 PCS
488 PCS
5
6-7YEARS
5
74 PCS
148 PCS
TOTAL
900 PCS
1800 PCS
N.B: SIZE SHOULD BE PUT ON BOTH MAIN MARK & SIDE MARK; REFERENCE NUMBER SHOULD BE PUT ON ONLY MAIN MARKS.
TERMS AND CONDITION:
GOODS SHOULD BE SUPPLIED AS PER APPROVED SAMPLE.
GOODS MUST BE DELIVERED TO THE FACTORY.
IF ANY DEFECTIVE OR RUNNING IMPROPER ITEM FOUND, THE SAME QUANTITY SHOULD BE REPLACED OR WILL BE ADJUSTED FROM THE PAYMENT.
BUYER NAME AND PO NUMBER MUST BE MENTIONED WITH DETAILS IN EACH DELIVERY CHALLAN.
ONE DELIVERY CHALLAN SHOULD NOT BE USED MORE THAN ONE ORDER.
Thanking You
Rahman
Auto style limited
Measurement = 42 X 39 X 35 CM
MAIN MARK (One long side Print )
TO : CELIO DISTRIBUTORS SUPPLIER : AUTO GARMENTS LTD-25568
STYLE NO : W04 KKNITWEAR-125
ORDER NO: 29987381
SIZE :
COLOUR : MULTI COLOR
CARTON NO: OF REF NO:
UNITS : PCS
MADE IN : BANGLADESH
SIDE MARK (One short side Print)
SIZE :
NET. WEIGHT : KILOGRAMS GROSS WEIGHT : KILOGRAMS DIM : 420 mm X 390 mm X 350 mm.
Measurement = 47 X 41 X 35 CM
MAIN MARK (One long side Print )
TO : CELIO DISTRIBUTORS SUPPLIER : AUTO GARMENTS LTD-25568
STYLE NO: W04 KKNITWEAR-125
ORDER NO: 201665851
SIZE :
COLOUR : MULTI COLOR
CARTON NO: OF REF NO:
UNITS : PCS
MADE IN : BANGLADESH
SIDE MARK (One short side Print )
SIZE :
NET. WEIGHT : KILOGRAMS GROSS WEIGHT : KILOGRAMS DIM : 470 mm X 410 mm X 350 mm.
SIZE: 2-3YEARS=100 PCS
3-4YEARS= 104 PCS
4-5YEARS= 91 PCS
5-6YEARS= 122 PCS
6-7YEARS= 37 PCS
Measurement = 42 X 39 X 35 CM
MAIN MARK (One long side Print )
TO : CELIO DISTRIBUTORS SUPPLIER : AUTO GARMENTS LTD-25568
W04 KKNITWEAR-125 ORDER NO: 29987381
SIZE :
COLOUR : MULTI COLOR
CARTON NO: OF REF NO:
UNITS : PCS
MADE IN : BANGLADESH
SIDE MARK (One short side Print )
SIZE :
NET. WEIGHT : KILOGRAMS GROSS WEIGHT : KILOGRAMS DIM : 420 mm X 390 mm X 350 mm.
Measurement = 47 X 41 X 35 CM
MAIN MARK (One long side Print )
TO : CELIO DISTRIBUTORS SUPPLIER : AUTO GARMENTS LTD-25568
STYLE NO: W04 KKNITWEAR-125
ORDER NO: 29987381
SIZE :
COLOUR : MULTI COLOR
CARTON NO: OF REF NO:
UNITS : PCS
MADE IN : BANGLADESH
SIDE MARK (One short side Print )
SIZE :
NET. WEIGHT : KILOGRAMS GROSS WEIGHT : KILOGRAMS DIM : 470 mm X 410 mm X 350 mm.
Software: We sale automated ERP software of Scrutiny Sheet Utilization Permission/Utilization Declaration/ Amendment/Export Order. Please contact us for this [email protected]
Software Sale: We have designed it as ERP Software as all garments manufacturer can store their data into system
Proforma Invoice Definition
Proforma invoice PI is defined as an pre-invoice which is sent to a customer before they receive product. For customers generally, it serves two major purposes. Firstly a PI – proforma invoice allows buyer to see estimates on what their invoice will be – shipping cost, product cost, processing fees and more. Secondly the proforma invoice -PI format is a record to be presented to customs agents when attempting to import or export items.
Packing : International Standard Exportable Sea Packing.
Payment : full payment by TT,
Bank : Declare your Bank Name as follows:
Beneficiary: FAKO INT’L TRADING CO.
Bank: HSBC Hong Kong
Beneficiary Bank Code: 005
Swift Code: HSBCHLLKHKH
A/C No.: 5689-54265-222
Shipment : Within 2days after payment.
Insurance : Covered by Buyer
Validity : 30 Days
The Seller: FAKO The Buyer: AUTO GARMENTS LIMITED
Signature: Signature:
Date: 2016/8/24 Date: 2016/8/24
Example: ================== Accessories Company to Garments Factory =================
PROFORMA INVOICE
INVOICE NO. NAA/Beng/0/2018 DT: 25-04-20132
TO,
AUTO GARMENTS LTD.
826 LOKER PARA,
GHATAIL TANGAIL
SL NO
ITEM DESCRIPTION
QTY
U/PRICE
AMOUNT
01.
PRINTED POLY BAG
3167/dz
$1.50
$4750.50
02.
BLISTER POLY BAG
100/dz
$2.50
$250.00
TOTAL
$5000.50
IN WORDS: Five Thousand & Cents Fifty only.
Payment :
Payment will be made US Dollar on Bangladesh Bank. A. By Irrevocable Back To Back Letter of Credit at 90 days sight from the date of Negotiation. B. PI should be attached with LC copy
Production:
Subject to receipt of L/C & UD
Time of Negotiation:
60 Days indicating partial delivery allowed. 15 Days from the date of shipment. Partial & Transshipment is allowed.
Interest:
Interest of usance period at LIBOR rate on Openers Account.
Insurance:
Insurance to be covered by the LC Opener.
Bank Charges:
All Bank Charges are on openers Account.
Overdue Interest:
Payment to be made within the date of maturityIf failed overdue interest to be paid by opener at 20%
Claim :
Supplier (Beneficiary) is not liable more than the value of this invoice in case of any claim in future
Complain:
Complain regarding quality / quantity of the merchandise should Reach to supplier within 7 (seven) Days after receiving goods.
UD Terms:
Product details, qty, value and beneficiary’s name must be mentioned in the UD
LC Transfer:
LC must be transferable and third party documents acceptable
Advising Bank:
JAMUNA BANK LTD. MIRPUR BRANCH. SENPARA PARBATTA, MIRPUR-10, DHAKA-1216. Swift Code: JAMUBDDH056
Click and Download Original Format of Back to Back L/C from here [wpdm_package id=’120′]
We have develop Garments ERP where we can input all information and capable to generate report. Please contact us for ERP software at [email protected]
Example of Back To Back Letter of Credit Format
BACK TO BACK LETTER OF CREDIT
TELEX NO : ________________________________________________________________ TO : ________________________________________________________________ FM : ISLAMI BANK BANGLADESH LTD, LOCAL OFFICE, DHAKA-1000, BANGLADESH. TEST _____________________________ ON USD ____________________________ DATED _____________________ (.) WE ISSUE OUR IRREVOCABLE _______________________ DOCUMENTARY CREDIT NO. IBL/BB/ DTD. ______________________________ AS PER DETAILED BELOW :-
BENEFICIARY : M/S. ________________________________________________________ . ______________________________________________ . ______________________________________________ AMOUNT : USD _______________________________________ (SAY U. S. DOLLAR) . ________________________________________________________
LAST DATE OF SHIPMENT : ________________________________________ NEGOTIATION : WITHIN DAYS OF SHIPMENT BATE OF EXPIRY : ________________________________________ TRANSHIPMENT ALLOWED UNDER THROUGH B/L / NOT ALLOWED PARTSHIP[MENT ALLOWED/NOT ALLOWED. COMBINED TRANSPORT DOCUMENTS NOT ACCEPTABLE SHORT FORM, BLANK BACKED, CHARTER PARTY & THIRD PARTY BILL OF LADING/AIRWAY BILL NOT ACCEPTABLE SHIPMENT PRIOR TO L/C DATE NOT ACCEPTABLE. SHIPMENT FROM _____________________________________ TO CHITTAGONG/DHAKA(BY SEA/AIR) SHIPMENT OF GOODS COVERING:FABRICS ___________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ N ACCESSORIES FOR USD _____________________ FOR HUNDRED PERCENT EXPORT ORIENTED READYMADE GARMENTS INDUSTRY EXACTLY AS PER PROFORMA INVOICE NO. ______________________________________ DTD. _____________________________ OF THE BENEFICIARY SUBMITED AT OUR COUNTER. THIS DOCCREDIT AVAILABLE BY NEGOTIATION AGAINST BENEFICIARY DRAFT IN DUPLICATE AT 120 DAYS SIGHTFROM THE DATE OF ACCEPTANCE/NEGOTIATION DRAWN ON OURSELVES A/C APPLICANT UNDER OUR DOCCREDIT FOR 100 PCT. CNF INVOICE VALUE ACCOMPANTED BY THE FOLLOWING DOCUMENTS : A. SIGNED INVOICE IN 8 FOLED CERTIFYING MERCHANDISE OF __________________________________________ ORIGINAL INVOICE MUST SHOW LCAF NO. ____________________ UNDER BONDED WARE HOUSE LICENCE SYSTEM, EXPORT L/C NO. B. FULL SET OF CLEAN ON BOARD OCEAN BILL OF LADING OF A REGULAR LINER VESSEL/AIR WAYBILL MARKED “FREIGHT PREPAID” DRAWN ON OR ENDORSED FAVOURING/CONSIGNED TO L/C OPENING BANK NOTIFY APPLICANT OF L/C ___________________________________________________________ C. BENEFICIARY MUST ADVICE APPLICAN, M/S. _______________________________________________________ _____________________________________________ AND TO L/C OPENING BANK MENTIONING COVER NOTE NO. ______________________________________ AND L/C NO. IBL/BB/__________________________________________ GIVING _______________________________ FULL DETAILS OF SHIPMENTS. A COPY OF THIS ADVICE MUST ACCOMPANY EACH SET OF DOCUMENTS.
D. CERTIFICATE OF ORIGIN IN DUPLICATE FROM CHAMBER OF COMMERCE/GOVT. CLEARLY MENTIONING COUNTRY OF ORIGIN OR PACKING/CARTON/CONTAINER FOR CUSTOMS CLEARANCE. E. DETAILS PACKING LIST IN 4 FOLDS. F. PER-SHIPMENT INSPECTION CERTIFICATE TO BE USSUED BY AT BENEFICIARY’S COST MENTIONING THAT THEY HAVE INSPECTED AND SATISFIED TOQUALITY QUANTTIY OF THE GOODS AS PER L/C TERMS. OTHER TERMS AND CONDITIONS 1. SHIPMENT BY ISRAEL FLAG VESSEL/CARRIER PROHIBTIED. 2. ALL FOREIGN BANK CHARGES UNCLUDING REIMBURSING BANK’S CHARGES OUTSIDE BANGLADESH SHOULD BE ON BENEFICIAR’S ACCOUNT. 3. ADDITIONAL AMOUNT EXCEEDING THE CREDIT VALUE IF ANY WOULD BE PAID BY US AT THE RATE PREVAILING IN BENEFICIARY COUNTRY BUT NOT EXCEEDING “LIBOR” ON MATURITY DATE UPONRECEIPT O SEPARATE CLAIM MEMO OF BEBEFICIARY ALONGWITH ORIGINAL DOCUMENTS THROUGH NEGOTIATING BANK DULY ACCEPTED BY APPLICANT. CLAIM MEMO IF SENT BY SEPARATE MAH, WILL NOT BE ACCEPTED. 4. ONE SET NON-NEGOTIABLE DOCUMENTS INCLUDING DETAILED PACKING LIST MUST BE DESPATCHED TO APPLICANT WITHIN DAYS AFTER SHIPMENT BY COURIER/SPEED POST, RECEIPT MUST ACCOMPANY DOCUMENTS. 5. GOODS MUST BE SHIPPED IN CONTAINER. IN CASE OF SEA SHIPMENT. 6. LENGTH OF FABRICS PCS. LESS THAN 20 YDS. NOT ACCEPTABLE. A CERTIFICATE TO THIS EFFECT MUST ACCOMPANY EACH SET OF DOCUMENTS. 7. ADD CONFIRMATION CHARGES FOR USD- ON BENEFICIARY’S A/C WHICH WILL BE DEDUCT FROM PAYMENT. INSTRUCTION FOR NEGOTIATING BANKER: A.A. UPON MATURITY CLAIM REIMBURSEMENT FROM OUR ACCOUNT NO. 1949102 WITH AMERICAN EXPRESS BANK LTD.NEW YOUK, USA PROVIDED DOCUMENTS CMOPLY STRICTLY WITH CREDIT TERMS IN CASE O PAYMENT BEFORE MATURITY, ADDITIONAL AMOUNT WILL BE REDUCED PROPORTIONATELY. A.A. UPON MATURITY CLAIM REIMBURSEMENT FROM OUR ACCOUNT NO 3582-066939-001 WITH STANDARD CHARTERED BANK LTD. NEW YOUK, USA PROVIDED DOCUMENTS COMPLY STRICTLY WITH CREDIT TERMS IN CASE OF PAYMENT BEFORE MATURITY, ADDITIONAL AMOUNT WILL BE REDUCED PROPORTIONATELY. A.A UPON MATURITY CLAIM REIMBURSEMENT FROM OUR ACCOUNT NO.3607-6621 WITH CITI BANK NA NEW YORK, U.S.A PROVIDED DOCUMENTS COMPLY STRICTLY WITH CREDIT TERMS IN CASE OF PAYMENT BEFORE MATURITY, ADDITIONAL AMOUNT WILL BE REDUCED PROPORTIONATELY. A.A. UPON MATURITY CLAIM REIMBURSEMENT FROM OUR ACCOUNT NO 010020ISLA00 WITH MASHREQ ASIA LTD. HON KONG PROVIDED DOCUMENTS COMPLY STRICTLYWITH VREDIT TERMS IN CASE OF PAYMENT BEFORE MATURITY, ADDITIONAL AMOUNT WILL BE REDUCED PROPORTIONATELY. A.A UPON RECEIPT OF DOCUMENT COMPLYING CREDIT TERMS WE SHALL COVER AS PER YOUR INSTRUCTION ON MATURITYTO YOUR DESIGNATED BANK ACCOUNT IN NEW YOUK, U.S.A. IN CASE OF PAYMENT BEFORE MATURITY, ADDITIONAL AMOUNT WILL BE REDUCED PROPORTIONATELY. BB. DOCUMENT WITH DISCREPANCY MUST NOT BE NEGOTIAED EVEN UNDER RESERVE WITHOUT OUR PRIOR APPROVAL CC.DOCUMENT TO BE SENT TO US BY COURIED/SPEED POST. THIS INS OPERATIVE INSTRUMENT AS PER UCPDC(1993 REV.) ICC PUB-500 ADVISER WITH ADDING CONFIRMATION AT BENEFICIARY’S COST. NEGOTIATION(S) RESTRICTED TO L/C ADVISING BANK ONLY AGAINST THEIR ADDING CONFIRMATION TO THIS CREDIT.
