Questions about letters of credit? What is a Letter of Credit?

Communicate with the guest first, if he agrees, it is a point of credit that does not match, just deduct some money!

If you don't agree, you can get into a lot of trouble and you may use this as an excuse to refuse to pay! Or ask you to give a discount. Be careful.

Communicate more and do what you can.

First question: Is it container shipping? What is the original words about the transshipment of the bill of lading, what do you provide to give you accurate.

The second question: in addition to 31d, look at the requirements of 48. But depending on your situation, it should be okay.

There are three characteristics of a letter of credit:

1. Under the condition of L/C payment, the issuing bank is the first payer. Therefore, L/C payment is a kind of bank credit.

2. The letter of credit is a self-contained document independent of the sales contract.

3. The payment under the L/C is a kind of purchase and sale of documents: as long as the documents submitted by the exporter after delivery are consistent with the terms of the L/C, "the documents are consistent, the documents are consistent", the bank will guarantee to pay the exporter. The importer obtains a document representing the goods after payment.

Further information: L/C refers to the payment commitment issued by the bank in accordance with the application of the purchaser in the purchase and sale contract in accordance with the application of the purchaser in the L/C in the domestic economic activities. According to the letter of credit business links involved between the buyer and the seller, it can be divided into buyer's letter of credit and seller's letter of credit.

The general procedure for payment by letter of credit is:

1. The parties to the import and export shall clearly stipulate in the sales contract that the payment shall be made by letter of credit.

2. The importer shall submit an application for issuance to the bank where it is located, fill in the application for issuance, pay a certain deposit for issuance or provide other guarantees, and ask the bank (issuing bank) to issue a letter of credit to the exporter.

3. The issuing bank shall issue a letter of credit with the exporter as the beneficiary according to the content of the application, and notify the exporter of the letter of credit through its ** bank or correspondent bank (collectively referred to as the advising bank) in the exporter's location.

4. After the exporter ships the goods and obtains the shipping documents required by the L/C, he shall negotiate and pay the payment to the bank where he is located (which can be the advising bank or other banks) according to the provisions of the L/C. (5) After the negotiating bank negotiates the payment, the negotiating bank shall indicate the negotiated amount on the back of the L/C.

Key service features include:

1. Domestic L/C is an off-balance sheet business, which is conducive to reducing the buyer's capital occupation.

2. The buyer can use the deferred letter of credit settlement, or can apply for the buyer's financing business such as bill billing, so as to alleviate the pressure of insufficient liquidity.

3. With the domestic L/C received, the seller can apply to the bank for financing business such as domestic L/C packaging loan to accelerate capital turnover.

L/C refers to a written voucher issued by the bank to the exporter (seller) at the request of the importer (buyer) to guarantee the responsibility of paying the purchase price. In the L/C, the bank grants the exporter the late sell right to issue a bill of exchange of not more than the prescribed amount under the conditions specified in the L/C, with the bank or its designated bank as the payer, and to attach the shipping documents as required to collect the payment for the goods at the designated place on time.

In international activities, the buyer and the seller may not trust each other, and the buyer is worried that the seller will not deliver the goods according to the contract requirements after the advance payment; The seller is also concerned that the buyer will not pay after shipping the goods or submitting the shipping documents. Therefore, it is necessary for two banks to act as guarantors for both the buyer and the seller, to collect and submit documents on behalf of the buyer, and to replace commercial credit with bank credit. The instrument used by banks in this activity is the letter of credit.

There are three characteristics of the letter of credit method:

First, the letter of credit is a self-sufficient instrument. The letter of credit is not attached to the sales contract, and the bank emphasizes the written certification of the letter of credit and the basic ** when reviewing the documents;

Second, the letter of credit is a pure document transaction. The letter of credit is a voucher payment, not the goods. As long as the documents match, the issuing bank should pay unconditionally;

Third, the issuing bank bears the primary responsibility for payment (primaryliabilitiesforpayment). A letter of credit is a kind of bank credit, it is a kind of guarantee document of the bank, and the issuing bank has the primary responsibility for payment.

Categories: Business Selling >>**.

Problem description: As indicated. Analysis:

What is a Letter of Credit?

A letter of credit is a document used by a bank to guarantee the buyer's or importer's ability to pay. In international ** activities, the buyer and the seller may not trust each other, and the buyer is worried that the seller will not deliver the goods according to the contract requirements after the advance payment; The seller is also concerned that the buyer will not pay after shipping the goods or submitting the shipping documents. Therefore, it is necessary for two banks to act as guarantors for both buyers and sellers, collect and submit documents on behalf of them, and replace commercial credit with bank credit.

The instrument used by banks in this activity is the letter of credit.

It can be seen that the letter of credit is a certificate for the bank to conditionally guarantee payment, and it has become a common settlement method in international activities. According to the general provisions of this settlement method, the buyer first deposits the payment to the bank and returns the remaining bank, and the bank opens a letter of credit, notifies the seller's bank to open an account in another place and tells the seller, and the seller delivers the goods according to the terms stipulated in the contract and the letter of credit, and the bank pays on behalf of the buyer. 

The letter of credit method has three characteristics: first, the letter of credit is not attached to the sales contract, and the bank emphasizes the leakage certification in the written form of the separation of the letter of credit and the basic ** when reviewing the documents. Second, the letter of credit is a voucher payment, not subject to the goods.

As long as the documents match, the issuing bank should pay unconditionally; Third, the letter of credit is a kind of bank credit, which is a kind of guarantee document of the bank.

The main characteristics of a letter of credit are as follows:

1. Letter of credit isBank credit2. The letter of credit is the beneficiary of the issuing bankConditionalPayment Commitments.

3. Letter of creditIndependent of the sales contract between the applicant and the beneficiary, i.e. not bound by this contract.

4. The letter of credit is between the issuing bank and the beneficiarySeparate documents are bought and sold