Master Export LC Opening Process in Garment Buying House

Last Updated on 13/12/2020

L/C or LC means Letters of Credit which is in general a conditional document extended by the bank in connection with presentation of export value. L/C plays a very dominant role in this matter. There are various types of L/C. In this article I will explain what is Master L/C and how to open a master L/C? Functions circle of LC is shown in below diagram.

function of lc
Fig: Function area of lc

Master Export LC:

When a L/C is opened to import goods directly from the exporter is called master L/C. Master L/C is issued by the buyer (Buyer’s bank) to manufacturer. Master L/C has higher financial value than back to back L/C. It is used in international trade between buyers and sellers of different countries.

How to open a master L/C
Fig: How to open a master export LC

In this article I will give a sample of Master L/C. I think it will be helpful to know that how to open a master LC in garment export business.

Example of a Master L/C:

ATLX7052 17H 26 04/05/92NACHR, NR A 28E3991
From: Commerce Bank AG
04-04-93 MEMO ZOAX. 1
Message: NR 50264 RB

TEST commerce bank purt for used 120.540.10
To: Sonali Bank, head office Motijheel commercial area, Dhaka 1000, Bangladesh.

Without adding your confirmation please advice HROUGH INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LTD. Motijheel branch, Dhaka, Bangladesh by order of Talha Import GMBH & Co. Windallee-15, D-2930 Varel-1, in favour of H.L WORLD WIDE LTD. 10/a Circuit House road, Dhaka. We open our irrevocable transferable doc. Credit covering no talha 1000644824 for USD 120.540.60 CDF bremen covering.

Men shirts 65-35 T/C print SZ: 38-46

a. 10.020. pcs, art 17.17389 price: USD 2.40 per piece C + F bermen
b. 10.020. pcs, art 17.7400 price: USD 2.40 per piece C & F bermen
c. 10.020. pcs, art 17.7410 price: USD 2.40 per piece C & F bermen
d. 10.020. pcs, art 17. 7413 price: USD 2.365 per piece C & F bermen
e. 10.020. pcs, art 17. 7417 price: USD 2.365 per piece C & F bermen for item (a to e)


Fabric T/c 65/35 Pct
Construction: 96 x 72, 45 x 45
Guaranteed without formaldehyde
Fab bein processed by guaranteed without smell.

Color fastness:

Color fastness being guaranteed washing 60 degree.


Each piece per polybag and all further
Details against order no. 93-17/35


Each piece with label showing international washing instruction size.
Quality description in six languages.
All details against order no. 93-17/35 and all TLX/ letter/ fax. Of Talha Import Exporter gmbh & Com.
All A/M details must be confirmed in the commercial invoice.

Doc. Credit is valid until 10th October 2019 for presentation of following documents at the counter of any bank in Bangladesh.

Full set of clean signed on board ocean shipping lines bills of lading of Maersk Line, issued to the order of the bank in bangladesh which is remitting the documents and endorsed by this bank to the order of commerce bank a & f notify A/M applicant, marked freight prepaid.

B/L must mention the carrying ocean vessel inspection certificate signed by Talha Textile-import or by Mr. ………………. Of Ltd. Certifying that, of the order have been fully complied with………………….

Official certificate of origin for textile products, issues by export promotion bureau in Dhaka or Chittagong/Bangladesh, evidencing goods to be of Bangladesh origin.

Packing list issued in three originals.
Signed commercial invoice issued in three originals

Letter of confirmation signed by world wide ltd, Dhaka, certifying that full set of copy documents sent to applicant Talha by telefax-no, 49-4451-12088-or by DHL courier service indicating relevant DHL for warder air-bill number.

Evidencing Shipment of Goods as Specified Above:
From Chittangong by Maersk Line latest 30th july 2019 to bremen / Germany.

Trans shipment allowed
Part shipment allowed

Documents to be presented within 10 days after the date of issuance of the shipping documents (s) but within the validity of credit.

Credit available with any bank in Bangladesh by negotiation.

We here by engage with drawers and for bona fide holders that drafts drawn and negotiated in conformity with the terms of this credit will be dully honored on presentation, the amount of each draft must be endorsed on the reverse of the original credit instruments. The negotiating bank must certify to this effect, negotiation under reverse not acceptable.

All bank charges and commission incl. eventual negotiation charges arising outside the federal republic of Germany are to be borne by the beneficiaries.

Please forward the documents by first and second registered airmail to. Commerz Bank A & G. Montsstr, 6. D-2940 Wilhel Mshaven, credit subject to U.C.P, for documentary credits 2019 revision I.C.C publication number 400.

You may also like: How to Open Back to Back L/C in Garment Export Business

This is the operative credit instrument and no mail confirmation will follow.

Commerz bank A & G foreign dept.
Foreign dept.

Note: It is just an example, please don’t take it other ways. If you have any suggestions then comment below.

Reference: Garment and Textile Merchandising – by M.A. Razzaque


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