About the product
Import L/C refers to the written commitment issued by the Bank to the exporter according to the application of the importer, which guarantees that the foreign payment will be made according to the terms of the L/C within a certain period, with the full set of documents sent by the negotiating bank/sending bank that meet the requirements of the L/C. According to the time limit, import L/C can be divided into sight L/C and usance L/C. Business processes include issuing, modifying, document examination, payment/acceptance or dishonor, etc.
Product features
1. Improve the negotiating position - opening a letter of credit is equivalent to providing the exporter with a conditional payment commitment with bank credit and to enhancing the credit of the importer, and thus enabling the importer to get a more reasonable price of goods.
2. Guarantee the goods - change commercial credit into bank credit. The intervention of banks makes the trade more guaranteed. Through documents and terms, the right of goods, the time of shipment and the quality of goods can be effectively controlled.
3. Reduce the pressure of fundsfor importers who use credit for opening L/C, the occupation of their funds can be reduced from opening to payment.
Application
The importer and the exporter hope to make certain agreements on each other's behavior to enhance the credibility of trade; or the imported goods are in the seller's market, and the exporter insists on using L/C for settlement; or importers with insufficient liquidity and trade financing plans.
Rate
1.5‰ of the opening amount, with a minimum of 500 yuan, and an increase of 0.5‰ every three months with a validity period of more than three months. No additional fees shall be charged for the full deposit, the full deposit certificate of the Bank and the fully guaranteed pledged wealth management products of the Bank.
Handling process
1. The importer and the exporter sign the import trade contract, agreeing to use L/C for settlement.
2. Upon the application of the importer, the Bank shall verify the credit exposure limit or low-risk limit.
3. The Bank accepts the importer's application for opening an L/C and uses its credit line.
4. The notifying bank informs the beneficiary, i.e., the exporter, of the letter of credit.
5. The exporter prepares the goods for shipment and submits the documents required by the L/C to the Bank through the bank in the place of export.
6. Upon receipt of the documents, the Bank shall deduct the importer's money for external payment after check and verification or make external payment on the due date after acceptance.
7. In case of any nonconformities with the documents, the Bank can refuse to pay. After the importer accepts the documents, the Bank will accept or make payment.
8. After payment, the credit line of the importer in the Bank shall be released.
