Import L/C business

Product descriptions

An import L/C is a payment commitment issued by a bank to a foreign exporter in response to an application from a domestic importer. It promises that the bank will pay the exporter when the exporter meets the terms and conditions of the L/C.

Business scope

1. Open various types of L/C, such as sight L/C, deferred payment L/C, acceptance L/C, negotiation L/C, transferable L/C, confirmed L/C, revolving L/C, and reciprocal L/C, etc.;

2. Business processing includes issuing, modification, document review, payment/acceptance or refusal to pay, etc. (the issuing includes issuing of L/C with credit limits and issuing of L/C with margin); handle financing business such as import bill advance, delivery guarantee, etc.; assist the importer in handling exporter credit investigations, stocking and shipping status inquiries, etc.

Product features

1. Issuing a L/C is equivalent to providing the exporter with conditional bank credit payment commitments other than commercial credit, which increases the credit of the importer, and the importer can obtain a more reasonable price of goods based on this;

2. The receipt of goods is guaranteed.

By converting the commercial credit of the two parties to perform the contract into bank credit, the intervention of the bank can guarantee the trade delivery. Since the documents are delivered by the bank and must meet the requirements of the L/C, the title of goods and the loading period can be effectively controlled;

3. Reduce capital occupation.

For the importer who uses the issuing of L/C with credit limits, the occupation of their own funds can be reduced by issuing L/C first and paying later.

Applicable customers

1. Both the importer and the exporter hope to make certain agreements on each other's behavior in the performance of the contract to enhance the credibility of the transaction;

2. The importer is in a seller’s market, and the exporter insists on using L/C for settlement;

3. The working capital of both the importer and the exporter is not sufficient, and they plan to use trade financing through L/C settlement.

Submittals

1. When applying for the issuing, it is necessary to submit the issuing application, trade contract, import approval documents of foreign trade (such as import quota license, import registration certificate of mechanical and electrical product , etc.), and relevant documents required by the foreign administration department (such as the purchase of foreign exchange application (if purchase of foreign exchange is required), import payment verification form, payment application, import foreign exchange payment record form, etc.).

2. To handle this business for the first time, it is necessary to provide the approval document for the import and export business, the industrial and commercial business license, etc., and handle the procedures for opening the margin account.

Reminders

When opening an import L/C, the applicant shall bear more bank fees to provide additional guarantees for the exporter to collect payment. Therefore, it is recommended that the applicant requests the exporter to give preferential prices or provide other conveniences when signing the contract.