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Beneficiary Certificate Letter Of Credit Template for Indonesia

A Beneficiary Certificate for a Letter of Credit under Indonesian law is a formal declaration document issued by the beneficiary (typically the exporter) to confirm compliance with the terms and conditions specified in the Letter of Credit. This document, governed by Indonesian banking regulations and international UCP 600 rules, serves as a critical component in the Letter of Credit documentation chain, providing assurance to the issuing bank that all stipulated conditions have been met. The certificate must comply with Bank Indonesia regulations, particularly Regulation No. 5/11/PBI/2003 on Prudential Principles, and includes specific declarations about document authenticity, shipment details, and compliance with LC terms.

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What is a Beneficiary Certificate Letter Of Credit?

The Beneficiary Certificate Letter of Credit is a crucial document in international trade finance transactions under Indonesian jurisdiction. It is required when a beneficiary (usually an exporter) needs to certify that they have fully complied with all terms and conditions specified in a Letter of Credit. The document becomes necessary during the presentation of documents for payment under a Letter of Credit, typically after goods have been shipped or services rendered. The certificate must conform to Indonesian banking regulations, particularly Bank Indonesia Regulation No. 5/11/PBI/2003 and Law No. 7 of 1992 (as amended), while also adhering to international UCP 600 standards. It contains essential declarations about document authenticity, shipment details, and compliance with LC terms, serving as a key component in the documentation chain that triggers payment under the Letter of Credit mechanism.

What sections should be included in a Beneficiary Certificate Letter Of Credit?

1. Letter of Credit Reference Details: Specification of the LC number, issuing bank, and date of issuance

2. Beneficiary Information: Full legal name and address of the beneficiary making the certification

3. Transaction Details: Reference to the underlying commercial transaction, including contract numbers and dates

4. Compliance Declaration: Explicit statement that all terms and conditions of the Letter of Credit have been complied with

5. Document Listing: Enumeration of all documents being presented with the certificate

6. Shipment Certification: Confirmation of shipment details matching LC requirements

7. Authenticity Statement: Declaration that all presented documents are authentic and accurate

8. Signature Block: Area for authorized signature, name, title, and date

What sections are optional to include in a Beneficiary Certificate Letter Of Credit?

1. Partial Shipment Declaration: Required when the LC involves partial shipments, stating which portion this certificate covers

2. Third Party Documents Declaration: Required when any documents are issued by third parties, confirming their authenticity

3. Discrepancy Notice: Used when there are minor discrepancies that need to be declared, with confirmation of acceptance

4. Transfer Details: Required when the LC is transferred, including details of the first beneficiary's transfer

5. Clean On Board Declaration: Specific declaration about clean on board transport documents when required by LC terms

What schedules should be included in a Beneficiary Certificate Letter Of Credit?

1. Document Checklist: Detailed checklist of all required documents as per LC terms and their compliance status

2. Shipping Details Schedule: Detailed breakdown of shipping information including dates, vessel names, ports, etc.

3. Commercial Invoice Summary: Summary of commercial invoice details matching LC requirements

4. Discrepancy Schedule: If applicable, detailed list of any discrepancies and their resolution status

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Letter of Credit

Cost

Free to use

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