1. Product Definition
The import L/C is a kind of payment commitment that the Bank makes to a foreign exporter upon the application of an importer and with which the Bank promises to perform the payment obligation to the exporter if all terms and conditions specified in the L/C are met.
2. Service Advantages
(1) Improving your negotiation position. To open a L/C, it is equivalent to provide a conditional payment commitment to the exporter in addition to commercial credit. With your credit enhanced, you can bargain a more reasonable price for the goods concerned based on the L/C;
(2) Reducing your trade risks. Changing commercial credit into bank credit gives more guarantee to the trading activities.
3. Applicable Scope
(1) The exporter requires settlement by way of L/C;
(2) Both the importer and exporter hope to take the bank credit as the credit intermediary for commercial transactions;
(3) Both the importer and exporter hope to solve the problem of capital tie-up with the trade financing offered by a bank by way of L/C settlement.
4. Business Procedures
(1) The importer and the exporter enter into a sales contract and specify L/C as the settlement method;
(2) The importer submits the “Application for L/C”, “Letter of Commitment”, duplicate of import/export contract and other relevant documents to the Bank to apply for issuing a L/C (including various L/Cs such as sight and forward);
(3) The Bank issues the L/C to the exporter’s bank;
(4) After receiving the L/C, the exporter’s bank advises the exporter;
(5) The exporter’s bank delivers relevant documents to the Bank;
(6) After confirming that the documents conform to the terms and conditions of the L/C, the Bank pays exchange and makes payment to the exporter’s bank;
(7) The Bank advises the customer to go through the formalities for releasing documents so that the customer can take delivery.
Please call our customer service hotline 95561 or contact local branches to conduct this business, and you will be reached by our staff.TOP