L/C is a written undertaking on the part of the import bank (the issuing bank) to accept or make payments, on instructions from the importer (the applicant), to the exporter (the beneficiary) within a prescribed period and against the surrender of documents under the L/C.
L/C is a conditional payment commitment of the issuing bank. The issuing bank undertakes the first obligation of payment and is liable to pay so long as the presented documents is in accordance with the conditions and requirements stipulated in the L/C.
L/C is opened based on the sales contract, while independent of it at the same time. What it deals with are documents and has nothing to do with the actual goods.
Available L/Cs with the bank include documentary L/C and clean L/C, revocable L/C and irrevocable L/C, confirmed L/C and unconfirmed L/C, sight L/C and usance L/C, negotiable L/C and acceptance L/C, transferable L/C and nontransferable L/C, back-to-back L/C and reciprocal L/C, revolving L/C and standby L/C, etc..
Moreover, foreign exchange unsecured credit, import bills advance, export bills discount, packing loan, shipping guarantee, clean discount and other financing services are provided to the importer/exporter who use L/C for settlement.
? Buyer's L/C
Introduction
Import Documentary Credit is a payment pledge issued to a foreign exporter by the Industrial Bank at the request of a domestic importer. Wherein, the Bank pledges to undertake payment obligations to an exporter or its assignee on condition that the terms in the letter of credit are met.
Features
Services in this pipeline with the bank include the opening and modifying of the L/C, the receipt and examination of the documents under the L/C, making payment, acceptance or dishonor, funds settlement for the importer, inquiries, etc..
Handling Guide
Please fill out the letter of application and present with the duplicate trade contract, the letter of approval for the import in question, signature card, approvals from economic and trade departments and other related documents, at the same time, deposit guarantee funds or offer mortgages/pledges acknowledged by the bank.
? Seller's L/C
Introduction
After receipt and examination of the L/C drawn on the issuing bank on behalf of the importer, the bank (the notifying bank) issues a letter of notification to the domestic exporter, and delivers, after examination, the documents under the L/C submitted by the exporter to the issuing bank to collect money from.
Features
Services in this regard with the bank include issuing the letter of notification, documents examination, foreign exchange collection, foreign exchange settlement, discrepancy proposal by telegraph, inquiry, call-in, residual documents mail and related advisory services.