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Rabia Abbas



Maryam Cheema BC10-115 Noor Tayyaba BC10-119 Sehrish Mudassar BC10-120 Ayesha Siddique BC10-125

Sehrish Mudassar

Askari Bank Ltd


Letter of Credit

Application for L/C

L/C application form shall be filled in, signed and stamped by the customer. Branches will submit the L/C application form to the CFTU under a covering letter signed by Incharge Foreign Trade and the Branch Manager.

Application for L/C

The branches will be responsible for obtaining approval of the Limits from the competent authority and co-ordinate with CAD. The branches will obtain prior approval for any Excess over limit from competent authority and co-ordinate with CAD.

Performa Invoice/Indent
It is a sale contract including the date, sale contract number, buyer, description of goods, HS code, quantity, rate, total amount, packing, shipment period, and terms, original loading, destination, payment terms. Bank detail and other terms and conditions.

Stamp Duty on L/C Application

The cost of the adhesive stamps on the L/C forms should be recovered by the branches from the customer. The account will be debited at the time the stamp duty is paid and credited with the recoveries on subsequent sale of L/C form.

Approval of L/C Application

Before an application for issuance of L/C or an amendment is received for processing by the CFTU(s) it must be approved by appropriate credit authorities on the basis of Import L/C limit or one time transaction.

Documents Required
Financial Documents Bill of Exchange Transport Document 1. Transport by sea Marine Bill of Lading 2. Transport by air Original airway bill 3. Other Mode of Transport by road or by rail a truck receipt or a railway receipt.

Insurance Document
Name and address of the Insurance Company is provided under the condition of insurance in the L/C. while name and address of the applicant is already present.

Commercial Invoice
Description of the goods in commercial invoice must correspond with description in the L/C. It is necessary to advise the customer to describe goods briefly but adequately on the L/C application form.

Other Documents
Packing list weight note Certificates of Origin Certificates Inspection/Quality etc

I Form
This document must be signed and stamped by the importer, provided by Branches to CFTU(s) along with the L/C Opening Application request and is used for reporting to SBP at the time of retirement Rabia Abbas/ lodgment of documents. Duly completed I-Form must filed Maryam Cheema in respective LC files by CFTU(s).

Foreign Trade Officers Bank Alfalah Islamic

Department is responsible to assist the importers in foreign trade. Registers the contract between Pakistani importer and foreign exporter. Security evaluation of his application is done by the credit department.

Advantages of L/C

Terms to get L/C

Account holder Valid registration with Export Promotion Bureau (EPB). Valid membership certificate of Trade organization. Valid NTN (National Tax Number) certificate. Sales Tax Registration Certificate.

L/C Application Form

Description of the goods Instructions about the advice of credit Form of credit Name and address of the beneficiary Type of Credit Validity period of credit Port of shipment and port of destination Types and number of sets of documents required

Import Contracts
Cash against documents/sight (CAD) Documents against acceptance (DA)

Documents required for Import

Performa invoice Insurance certificate I Form Bill of Lading Bill of Exchange Packing List Commercial invoice

Modes of Payment

Sight L/C Usance L/C

Shipping Guarantee

Difference b/w islamic and conventional


Prohibition of Riba
Whoever buys foodstuff let him not sell it until he has possession of them. (Bukhari) Do not buy fish in the sea, for it is Gharar . (Bukhari) He who purchases food shall not sell it until he weighs it. (Muslim)