When the bank opens LC, it requires following documents:

1. Valid import license
2. Performa invoice
4. Letter of under taking form importer
5. Insurance cover

Valid import license

While the majority of the goods are freely importable, the Exim Policy (2007) of India prohibits import of certain categories of products as well as conditional import of certain items. In such a situation it becomes important for the importer to have an import license issued by the issuing authorities of the Government of India.

Performa invoice

Basically, a proforma invoice is one that a company sends to its client before delivering the goods that the client has purchased. This is to ensure that the balance will be paid by the client, usually because the supplier and the client have not done business with each other before.
This is an invoice that you give to your client before an actual transaction of payment for goods and services takes place.

●    You send a list essentially of goods or services you are offering the client.
●    The client confirms they want to purchase these goods or services.
●    You charge the client the appropriate amount of money.

A proforma invoice is comparable to a quote, where you and the client discuss what she wants to buy and then the client confirms the purchase through the proforma. Some companies will not release the goods or services until a client has agreed to the proforma invoice.

Insurance cover

This coverage provides primary general liability coverage for registered volunteer Scouters with respect to claims arising out of an official Scouting activity with the exception that the coverage is excess over any insurance that may be available to the volunteer for loss arising from the ownership, maintenance, or use of a motor vehicle or watercraft. This insurance is available only while the vehicle or watercraft is in the actual use of a Scouting unit and being used for a Scouting purpose.