International Business > Letter of Credit(1)Import Letter of Credit
�nbsp; Letter of credit is an undertaking of a bank for account of the importer to pay the foreign exporter the value of the goods provided the required documents are submitted and the terms of the credit are complied with.
�nbsp; Innless scope----1. Issuing different types of L/Cs such as: Sight Payment Credits, Deferred Payment Credits, Acceptance Credits, Negotiation Credits, Transferable Credits, Confirmed Credits, Revolving Credits, Reciprocal Credits. 2. Provide such transactions as issue L/C, amend L/C, receive and examine documents, make payment, acceptance or dishonor, assist the importer in investigate the exporter’s credit status, preparation of goods and liner inquiry.
(2)Export Letter of Credit
�nbsp; A series of service provided to the exporter by the bank in exporter’s country after it received L/C from issuing bank, including advising L/C, taking up and examining documents, presentation, reimbursement etc.
�nbsp; The contents of export L/C include checking up the authenticity of export L/C and amendment of L/C, advising the domestic exporter; transfer L/C, examining transport documents surrendered by the exporter and presentation of documents ; deal with trade financing such as negotiating, bill purchase, discounting on the request of clients; forward-sold of exchange in RMB; inquiry, urging, recourse short payment and interest, by-sending documents; check the credit of importer.
