To: Offshore Banking Unit

Date (day / month / year)

Application number: (For Bank use only)
Note: 1. Please tick the appropriate circle(s).
APPLICATION FOR IRREVOCABLE DOCUMENTARY CREDIT (DC) 2. Please use separate blank sheet if space is not enough.
Applicant (full name and address) DC Number DC issued under revolving DC credit line.
Transferable DC Confirmation required Others ……………………..
Back-to-Back DC : This is a back-to-back DC against the support of a master DC no.
…………………………………issued by …...…………………………..…………. (the "Master
Account number DC")
Beneficiary (full name and address) Front-to-Back DC : Issuance of the DC is subject to the support of a master DC to be issued
in our favour (the "Master DC") and we undertake to lodge with you the original Master DC
forthwith upon receipt of the same.
Contact Person Despatch Full Teletransmission Courier Collection at
by: (recommended) Counter
Tel. Number Fax. Number
Goods (Brief description without excessive details) Expiry Date and Place (where documents must be presented) of this DC

Advising Bank (if blank, any bank of your choice)

Trade Term DC Currency and Amount in words and figures Allowance of quantity or
For Shipment by Sea: FOB CFR CIF amount inc./dec.  %
Others: ……….
For Other kind of delivery: FCA CPT CIP Period for Presentation of Documents
Others: ………
Partial Shipments Documents to be presented within ………………… days after the date of shipment or
Allowed Not Allowed …………………………………..……, but within the validity of this DC.
Transhipment DC available
Allowed Not Allowed
Place of taking in charge / Dispatch from / Place of WITH Issuing Bank Any Bank …………………………
receipt:
BY Negotiation Acceptance
Port of loading / Airport of departure: Sight Payment Deferred Payment
Port of discharge / Airport of destination: AT Sight ……………………….days ………………………………….
Place of final destination / For transportation to / Draft drawn on (Not applicable to sight or deferred payment DC
Place of delivery: Issuing Bank
…………………………………….
not later than
Documents Required
(1) Signed commercial invoice in …..…original(s) and ……… copy(ies) ( indicating / not indicating DC No. and Contract No.) issued by the
beneficiary.
(2) Full set of original clean “On Board” ocean bills of lading made out to order of shipper / to order of ……………………………….…. and
endorsed in blank to……………………..…..., marked “Freight Prepaid / to Collect” and “Notify applicant/……………………….”,
mentioning this DC number.
Original air waybill marked “For the consignor / shipper” signed by the carrier or his agent, consigned to …………………………………..……
marked “Freight prepaid / to collect” and “Notify applicant/………………………………………”, mentioning this DC number.
Copy of Godown Warrant issued by…………………. warehouse company / ……. ……..consigned to applicant and stamped by Custom
House.
Cargo Receipt issued and signed by the authorised signatory of applicant whose signature(s) must be in conformity with the record held in the
issuing bank’s file mentioning this DC number, date of receipt of the goods, total value and quantity of goods received, certifying that the
goods have been received in good order and condition, and in trust for Shanghai Pudong Development Bank.
(3) Insurance Policy / Certificate in ….original(s) and … copy(ies) for … % of the invoice value showing “claims payable in People's Republic of
China in the same currency of the draft or the DC”, blank endorsed, covering Institute Cargo Clauses ( A B C Air Cargo), Institute
War Clauses ( Cargo Air Cargo), Institute Strike Clauses ( Cargo Air Cargo) and Theft, Pilferage and Non-delivery Clauses.
(4) Packing List in ……… original(s) and …….…copy(ies) indicating quantity / gross and net weights issued by ……………………
(5) Certificate of Quality in ………...original(s) and …….… copy(ies) issued by beneficiary / manufacturer / ……….…
(6) Certificate of Origin in ………..original(s) and …….… copy(ies) issued by ……………………
(7) Beneficiary’s shipping advice to applicant within … hours after shipment indicating name of vessel / flight no., date, quantity, weight
and value of shipment.
(8) Beneficiary’s certificate certifying that one set of shipping documents has been faxed to applicant within ………..… hour (s) after shipment.
(9) Additional documents required are stated on the attached sheet(s) which form an integral part of this application.
Additional Conditions
Third party as shipper is not acceptable.
Others:
Charges and/or Repayment Instructions
All banking charges outside issuing bank (including reimbursement charges) are for the account of the Beneficiary.
All banking charges are for the account of Beneficiary Applicant.
Please debit at issuance of DC ………..% of the DC amount (which would be refunded to the applicant if no
drawing is made under the DC) as margin deposit from our account number: ……………………. ………. …
For immediate settlement or T/T reimbursement, please debit our account number: ……………………. for settlement of the DC drawing.
Please settle the drawing of the DC by applying the proceeds of the export documents under DC DP DA……………..days
Please finance payment of drawings under this DC by booking an Import Loan for ………………………days.
Please fix exchange rate.
We request you to issue an Irrevocable Documentary Credit in accordance with the above instructions (marked with an “” where applicable) and
this application is subject to the terms and conditions printed overleaf.
S.
V.
In case of queries please contact us. Fax: Tel:
Authorised Signature(s) and Chop (if required)
For Bank Use Only
Captured Checked by Approved Date Margin % Commission Telegrams Postage Total
by by

725379420.doc
 Terms and Conditions of Application for Irrevocable Documentary Credit
In consideration of the issuance of the DC by Bank (the "Bank"), the applicant of this application (the "Applicant") agrees to the following
conditions :-

1. This application and the DC to be issued are subject to the Uniform Customs and Practice for Documentary Credits of the International Chamber
of Commerce as are in effect on the issuance date of the relevant DC ("UCP"), your Standard Terms for Banking Facilities that are in effect
from time to time and other agreement(s) previously signed and delivered to the Bank by the Applicant, if any. In case of conflict, terms of this
application shall prevail to the extent of conflict.
2. The Applicant shall pay and reimburse the Bank on demand (on a full indemnity basis) any sum in connection with the DC or any draft accepted
by the Bank or its delegate under the DC and irrevocably authorises the Bank to debit the Applicant's account(s) for any such sum at any time
the Bank thinks appropriate. Such sum includes interest, costs, expenses, commissions, reimbursement claims from any nominated bank or
confirming bank and any payment, negotiation, prepayment or purchase effected by the Bank in connection with the DC, all irrespective of any
alleged discrepancies in the presented documents and/or any fraud that may be alleged at any time or discovered subsequent to such payment,
negotiation, prepayment or purchase by any nominated bank, confirming bank or the Bank.
3. The documents and the goods are pledged to the Bank as security for the Applicant's liabilities and obligations to the Bank but the risks of the
goods shall be with the Applicant at all time. The Applicant shall maintain or procure the ultimate buyer to maintain insurance coverage
against loss and damage. Any insurance proceeds or sale proceeds payable to the Applicant shall be held by the Applicant in trust for the Bank.
4. If the documents called for do not include insurance policy(ies) or certificate(s), the Applicant undertakes to produce to the Bank within 15 days
from the date of this application an insurance policy or certificate acceptable to and in the Bank's name for the CFR value plus at least 10 per
cent, failing which the Bank may (but is not obliged) effect insurance at the Applicant's expense.

5. The Applicant undertakes to provide the Bank with the relevant sales contract and other documents in relation to the DC transaction upon request
of the Bank.

6. All the terms and conditions of the DC must be identical to that of the master credit detailed overleaf ( "Master DC"), if applicable, except as
otherwise provided in this application or agreed by the Bank.
7. The Bank is irrevocably authorised (but is not obliged) to (i) utilize documents presented under the DC for the drawing of the Master DC; (ii)
negotiate the presented documents, prepay the deferred payment undertaking incurred by the Bank or purchase the draft accepted by the Bank
under the Master DC (the "Financing") ; and (iii) directly apply the Financing proceeds to settle the corresponding drawing(s) under the DC
without first crediting such proceeds to the Applicant's account with the Bank, irrespective of discrepancies that may appear on the documents
presented under the DC (all of which, if any, are hereby waived).
8. The Applicant agrees and acknowledges that it is the sole responsibility of the Applicant to (i) ensure the clarity, enforceability, effectiveness and
adequacy of any terms or requirements incorporated into any DC; and (ii) comply with all applicable laws and regulations regarding the
underlying transaction to which the DC relates and obtain any necessary documents and approvals from any relevant governmental or
regulatory bodies and produce such documents or approvals to the Bank upon the Bank's request. The Bank is not responsible for and has no
duty whatsoever to advise the Applicant on such issues. The Bank shall not be liable to the Applicant for any direct, indirect, special or
consequential loss or damage, costs, expenses or other claims for compensation whatever which may arise out of such issues.
9. The Applicant agrees that the Bank may, at its sole discretion and without notice or consent from the Applicant, amend the terms and conditions
submitted by the Applicant and/or insert additional terms and conditions into the DC as the Bank thinks appropriate, including the requirement
of calling a draft or the terms in relation thereof, or cancellation of the whole or any unused balance of any DC issued by the Bank.
10. Notwithstanding any instruction in this application, the Bank may at its sole discretion, restrict, name or instruct any correspondent to be the
advising, confirming or nominated bank of the DC or to despatch any draft(s) and/or any documents by one or more mails or other method of
conveyance.
11. The Applicant agrees that the Bank is fully entitled to reject any discrepant documents presented under the DC notwithstanding that the
Applicant may have waived such discrepancy.
12. If the Applicant instructs the Bank to permit T/T reimbursement under the DC, the Bank is irrevocably authorised to pay and/or reimburse the
relevant claiming bank or reimbursing bank upon receipt of a claim from such bank even prior to the Bank's receipt of the presented documents.
The Applicant shall bear all relevant risks (including non-receipt or non-compliance risk of the presented documents) and shall reimburse and
indemnify the Bank for any payment under the DC. The Bank is irrevocably authorized to debit any account of the Applicant for the amount
owing by the Applicant under this provision.
13. The Applicant shall from time to time, upon the Bank's request, place with the Bank such amount of margin deposit in such currency (the
"Margin Deposit") at such time as the Bank may require. The Applicant agrees that i) the Margin Deposit shall cover and be security for all
obligations and liabilities (whether actual or contingent, present or future) of the Applicant to the Bank howsoever arising from or relating to
this application, the DC or any Financing made by the Bank; and ii) the Applicant has no right to use or withdraw any Margin Deposit until full
discharge of such obligations and liabilities. The Bank is entitled to apply all or any part of the Margin Deposit to satisfy or reimburse the
Bank's payment effected or to be effected under or pursuant to the DC without notice to the Applicant. If the Applicant fails to provide the
Margin Deposit as the Bank requests, the Bank may withdraw or set aside any sum out of any Applicant's account maintained with the Bank as
the Margin Deposit.
14. Without prejudice to paragraph 13 above, the Applicant undertakes that at least 2 banking days before the due date of the DC, it shall place with
the Bank sufficient amount of deposit in any Margin Deposit account to cover any liability of the Bank under the DC.
15. The Applicant agrees and undertakes to examine the customer copy of the DC already issued by the Bank and irrevocably agrees that failure to
give a notice of objection about the contents of the DC within 5 business days after the customer copy of the DC is sent to the Applicant shall
be deemed to be its waiver of any rights to raise objections or pursue any remedies against the Bank in respect of the DC.
16. The Applicant shall in all circumstances on demand indemnify the Bank or its delegate(s) on a full indemnity basis or provide the Bank with any
cash or collateral in such form and value as the Bank may require against all liabilities, losses, damages, demands, expenses and costs
(including legal fees), proceedings or actions which the Bank or its delegate(s) may incur or suffer under or in connection with this application
or the DC.
17. The application form should be completed in English only.
18. If this application is executed by more than one party, the obligations and liabilities of each of the parties are primary as well as joint and several.
19. This application is governed by and shall be construed in accordance with the laws of Hong Kong SAR ("Hong Kong") and the Applicant
agrees to submit to the non-exclusive jurisdiction of the Hong Kong courts.

725379420.doc