Uganda - Apply for Standby Letter of Credit

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Procedure

How to apply for a Standby letter of credit in Uganda.
Step 1

• The first step for the applicant to apply for standby letter of credit, should be through the bank which has a branch in Uganda.
• The sponsoring news organization must have a relationship with the home bank.
• Contact the concerned officer at bank for help when filling up the necessary application form, he/she will take you through all the necessary steps.

The applicant must provide collateral to the bank or have sufficient credit to induce the bank to issue the instrument.
Step 2

• Attach the necessary documents on the application including the guarantee letter from sponsoring news organization.
• This letter must show that the sponsoring new organization will agree to post the amount of money needed to issue the letter of credit,and has to be produced along with other required documents.
• Please note that your bank may ask you to keep certain percentage of margin amount with the home Bank.
  

Step 3

• The applicant shall pay the Confirming Bank a fee for this convenience.
• The Confirming Bank then collects from the Issuing Bank the amount paid to the beneficiary.(the bank that represents the applicant).
• It may accept the letter of credit on behalf of the applicant and collect it on his behalf.
  

Step 4

• The applicant can obtain the letter of credit from the Bank,This is the applicants bank that issues the standby letter of credit.
• Once you have obtain a standby letter of credit from your home Bank then submit your application to the Press Office at the Ugandan Embassy in your home country before time, to allow the processing of permits.
• When the Journalist is planning to take ONE camera into Uganda, the delegation or journalist can simply state the information on his passport and therefore there is no need to submit a letter of credit.
  

Note

• There are places that may require special permit in case you wish to film additional places or areas your permit does not cover; note that this might result in you having to prolong your stay in Uganda.
• You should be careful with all your equipments and that you make sure not to lose anything during your trip; however in the event of loss please contact the Government Press Office in Kampala or register your claim at the nearest police station in Uganda.

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Required Documents

• Scanned Valid National Passport (minimum period validity 6 months at the time of travel)or any acceptable Travel document;
• Printed copy of a completed Online Visa Application Form(with one passport size photograph attached), and a copy of Payment Confirmed page;
• A letter of invitation from local contact(s) in Uganda;
• A letter of introduction from the organization(s) that journalists work for or represent;
• A copy of itinerary while on duty in Uganda;
• List of equipment accompanying applicant(s);
• Scanned copy of your passport's bio data page (the page with your photo).
• Your profession.
• Estimated date of arrival.
• Payment.Visa Fee (cash only)Paid in advance
• Application form
• A valid Passport.
• Two recent passport photos.
• Visa reference number (from Uganda).
• Letter from newspaper or the TV network or the news agency that is sponsoring the traveling delegation or journalist(employer).

Office Locations & Contacts

Bank of Uganda - HEAD OFFICE,
Physical Address:Plot 37/45
Kampala Road
Kampala, Uganda
Postal Address: P.O Box 7120,
Kampala, Uganda
Telex: 61059
Telephone numbers: +256-414-258-441/6
Fax: + 256-41-4230878 , +256-41-4233818
Email: [email protected]
Website Link

Eligibility

To be eligible one must be a journalist visiting Uganda on the short term mission of not less than 6 weeks gathering news or capturing news or Filming sites in Uganda on behalf of the foreign organization. This letter of credit is granted to the following category of people.

• Only Journalist accreditation is required.
• Visiting crew must pick up and sign for the accreditation in Uganda.

Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

• This standby letter of credit is valid for 3 months sometimes it depends on the entry permit.
• Processing permits for filming specific locations in Uganda takes 10 to 14 days.
• Getting approval for interviews with government officials requires 10 to 14 days.
• Getting approval for underwater, safari or aerial filming takes three weeks.

Documents to Use

• Data Form
• Application Form

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

Processing time take less than a one month but because of the complexity it can exceed that time.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Revolving letter of credit is useful to journalist who is intending to bring filming equipments into Uganda, then you need to obtain a standby Letter of credit which include a list of the Filming Equipments you intend to use.

• When you secure permission from the Foreign Affairs ministry Media Department of Uganda the traveling Delegates must be representing the newspaper or the TV network or the news agency that is sponsoring the traveling delegation or journalist.undertaking to reinstate a letter of credit either after the occurrence of a specific event or after a specific time period has lapsed.
• The bank works as a guarantee to the foreign organization that it holds an amount of money equal to that of the value of the specific equipment that will be entering Uganda.
• The sponsoring news organization MUST agree to post the amount of money needed to issue the letter of credit.
• The visiting delegations and journalists Must follow all rules and regulations during their stay including the prohibition of filming in areas without a permit.

Required Information

• Documents customs clearance for the equipments to be brought into the country.
• A list of all the equipments to be brought into Uganda.
• A valid passport for less than 6 months to expire.
• A letter of proof from sponsoring organization. .

Need for the Document

• A guarantee of payment issued by a bank on behalf of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are proof of a buyer's credit quality and repayment abilities.
• The bank issuing the SLOC will perform brief underwriting duties to ensure the credit quality of the party seeking the letter of credit, then send notification to the bank of the party requesting the letter of credit (typically a seller or creditor).
• This is letter that exempts Traveling delegation from having to pay any custom dues on filming Equipments that are brought in Uganda, under the agreement that the equipment will be taken out of the country again when the Journalist leaves Uanda at the end of Filming.
• The letter of credit should state that the newspaper or the TV network or the news agency that is sponsoring the traveling delegation or journalist guarantees that it holds an amount of money equal to that of the value of the specific equipment that will be entering Uganda. This letter MUST be issued by the Central Bank of Uganda or from another bank that has a branch in Uganda.ie Equity Bank.
• A standby letter of credit will typically be in force for about one year, allowing for enough time for payment to be made through standard contractual guidelines.
• The cost to obtain a standby letter of credit is typically 1-8% of the face amount annually, but the letter can be canceled as soon as the terms of the contract have been met by the purchaser or borrower.

Information which might help

• A Letter of Credit (LC) is a mode of payment used for the importation of visible goods.
• It is a written undertaking given by a Bank (issuing Bank) at the request of its customer (applicant), in which the Bank obligates itself to pay the exporter (seller/beneficiary) up to a stated amount within a prescribed time frame upon presentation of stipulated documents that conform to the terms and conditions of the documentary credit.
• A standby letter of credit will typically be in force for about one year, allowing for enough time for payment to be made through standard contractual guidelines.
• You can approach your bank to obtain a standby Letter of credit.The concerned officer at bank will help you in filling up necessary application to obtain a standby Letter Credit.
• Since the standby Letter of Credit is to allow you for the exemption of any taxes that would have otherwise been levied for entering such equipment into Kenya, you should submit to the airport authorities a standby letter of credit whose value should match that of the equipment you are planning to bring into Uganda.
• A standby letter of credit is a tool that provides a sense of security for the filming equipment while in Uganda.
• This letter exempts you from having to pay any custom dues, under the agreement that the equipment will be taken out of the country again when you leave.
• Things can go wrong in any kind of transaction, so it's nice to have a backup plan. Whether the Filming equipment is being sold is a service or a shipment of physical goods, a standby letter of credit can provide protection.
• The cost to obtain a standby letter of credit is typically 1-8% of the face amount annually, but the letter can be canceled as soon as the terms of the contract have been met by the purchaser or borrower.
• A standby letter of credit (as opposed to a commercial or documentary letter of credit) is drawn up with the understanding that it will not be drawn upon unless the bearer of the letter fails to fulfill his or her side of the agreement (the subsequent removal of all equipment that was initially brought into the country).

The major participants in an LC transaction are:

• The Buyer/Importer/Applicant i.e the customer requesting LC to be issued.
• The Seller/Exporter/Beneficiary i.e the Recipient of the LC.
• The Issuing Bank - which gives the written undertaking.
• Advising Bank/Seller's Bank i.e the bank that advises the LC to the beneficiary.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• External Link

Others

More information which might help people.