Credit line for issuing documentary credit là gì
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Hãy nâng cấp lên Microsoft Edge để tận dụng các tính năng mới nhất, bản cập nhật bảo mật và hỗ trợ kỹ thuật. Letters of credit
Trong bài viết nàyLetters of credit are bank documents that are commonly used for the purchase and sale of goods across international borders. Letters of credit are used for international transactions to ensure that payments will be made. A letter of credit is an agreement that is issued by a bank, in which the bank agrees to ensure payment on behalf of the buyer, if the terms of the agreement between the buyer and seller are met. Note that a letter of credit is also referred to as a documentary credit (DC). For an import letter of credit, the legal entity is the buyer or the applicant for the letter of credit. For an export letter of credit, the legal entity is the seller or the beneficiary of the letter of credit. The following parties are involved with a letter of credit:
The letter of credit includes a description of the goods, any required documents, the date of shipment, and the expiration date after which payment will not be made. The issuing bank collects a margin for the letter of credit. A letter of credit can be revocable or irrevocable. The nature of a letter of credit can be transferable, non transferable, or revolving. Typically, a letter of credit is an irrevocable and confirmed agreement that payment will be made to a specific beneficiary upon submission of complete and accurate shipping documentation. These specific documents are directly related to the contract between the seller/exporter (beneficiary) and the buyer/importer (applicant), as they show the issuer that the seller/exporter (beneficiary) has completely fulfilled his/her side of the deal. Once the seller/exporter (beneficiary) makes a compliant presentation, the issuer (bank or financial institution) pays the beneficiary even if the buyer/importer doesn't want to pay. The Documentary Letter Of Credit (DLC) Process: Step 1: Application Complete and return the DLC application with the documents from your deal (Pro Forma Invoice, SPA, Contract, etc.). Step 2: Draft We will create a FREE Documentary Letter of Credit SWIFT MT700 draft for you and your sell/exporter to review and confirm. Step 3: Draft Review & Opening Payment Once you and your seller/exporter have finalized the DLC draft (changes to the draft are free of charge) and are ready to obtain the DLC, you then wire the opening fee to our bank according to the pro forma invoice sent to by us. Once we have received the wire, we will release the finalized Documentary Letter of Credit (DLC) to the bank or financial institution for issuance by SWIFT MT700. Step 4: Issuance In most cases, the bank will issue the DLC within 48 hours of release. Once the DLC is issued, we email you a copy of the Documentary Letter of Credit as it is transmitted by a MT700 SWIFT message to the beneficiary, including the DLC reference number. Your seller/exporter will be able to confirm receipt of the DLC transmission shortly thereafter. Step 5: Presentation of Documents Once the seller/exporter has prepared and loaded all goods for shipment, they must send the specified documents for that particular shipment to their own bank (the advising bank). Their bank will then forward the documents to our bank (the issuing bank), and we will email you copies of the presentation and all of the documents that were submitted by the seller/exporter for your review and approval. Step 6: Payment of Goods Before our bank can release the original documents, we must receive payment for the presentation. Once we have received payment, we cosign the documents to you and overnight them to your freight forwarder or to whomever you wish. |
