Letter of credit terminology issues, where is the trade term of letter of credit

1.The applicant was insured on the basis of the records as at 21 February 2007. A copy detailing all proof of loading should be sent by airmail or fax to the applicant and EFU Company Efu House, Jinah Road, 5005, Karachi-74000, Pakistan (this is the address, in Karachi, Pakistan), with reference to the insurance record number and letter of credit number mentioned above.

2.With the exception of bills of exchange and invoices, other third-party documents are accepted.

3.Charterer bills of lading will not be accepted.

1.The insurance is taken out by the issuer under the 6912157 open policy dated 21 February 2007 and the certificate of insurance showing the shipment is sent by air or fax directly to the issuer and Efu General Insurance Limited in Pakistan, address: Efu House, Jinah Road, 5005, Karachi-74000, indicating the above open policy number and letter of credit number.

Add a sentence, as if the above original text is wrong, it should be the beneficiary insurance, otherwise the issuer will send it to the issuer after the insurance, which makes no sense).

2.In addition to bills of exchange and invoices, third-party documents are acceptable.

3.Charterers' bills of lading are not accepted.

The L/C must be filled in with the terminology. Terms refer to FOB, CFR, CIF, etc. These terms set out the rights and obligations of both the buyer and the seller.

Therefore, the letter of credit must be marked with ** terminology, so as to stipulate the sale.

In practice, those terms that seem to be beneficial to the exporter, for example, the letter of credit is a usance letter of credit, but in clause 47a, it is stipulated that if the beneficiary has a discount demand, the issuing bank can discount it at sight, and the discount fee shall be borne by the issuing applicant, but the issuing bank requires to invoke local laws and regulations to deduct interest income tax when making payment.

Therefore, before the buyer and the seller issue the L/C, it is necessary to confirm the type of L/C, such as not accepting the L/C with the number of usance days, or negotiate with the buyer to modify it to a fake usance L/C, so as to avoid the risk of delayed collection of foreign exchange and additional costs that may arise to the exporter.

Procedure for payment by letter of credit:

1) The parties to the import and export shall clearly stipulate in the sales contract that 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 contents 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 shipping the goods and obtaining the shipping documents required by the L/C, the exporter shall negotiate the payment to the bank where it is located (which can be the advising bank or other banks) in accordance with 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 letter of credit.

The so-called letter of credit refers to a conditional payment commitment issued by the issuing bank to the beneficiary. The L/C factory is often used in international goods**, and the seller (beneficiary) should conduct a comprehensive review after receiving the L/C.

First, the explanation of the L/C itself: number, type, applicant, beneficiary, redemption method and redemption bank, etc.;

Second, the description of the goods: product name, unit price, quantity, packaging, etc.;

Third, the requirements for transportation: transportation routes, the latest shipment time, whether to allow batching, transshipment, etc.;

Fourth, the requirements for documents: invoices, packing lists, transportation documents, insurance documents, etc.;

Fifth, additional conditions;

Sixth, interbank instructions or authorizations.

L/C payment is one of the main payment methods in the international market, which is a settlement method paid by the bank to the seller (exporter) on behalf of the buyer (importer) in the case of consistent documents, and its biggest advantage is to use bank credit as a guarantee payment. The exporter only needs to submit various documents that meet the requirements of the L/C in accordance with the requirements of the L/C, so as to achieve "consistency in single documents and consistent documents" to get payment from the bank. Because the payment of the goods is conditional on obtaining the freight documents that meet the provisions of the letter of credit, the risk of prepayment is avoided, so the payment method of the letter of credit solves the contradiction between the import and export parties in the payment and delivery issues to a large extent.

Letter of credit refers to a written guarantee document issued by the issuing bank to a third party at the request of the applicant and in accordance with its instructions, which contains a certain amount of money and makes payment with the required documents within a certain period of time.

To put it simply, L/C is Alipay in the international **, which is a payment method based on the transaction between the buyer and the seller.

Letter of credit (L C) refers to a written guarantee document issued by the issuing bank to the beneficiary at the request of the applicant (buyer) and according to its instructions, which contains a certain amount of money and pays with the documents that meet the requirements within a certain period of time. Letter of credit is the most important and commonly used payment method in the world.

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.

A letter of credit is opened specifically for the buyer. It is issued by the bank at the request of the buyer and can authorize the holder to withdraw money from the issuing bank.

1. L/C refers to a written voucher issued by the bank to the exporter (seller of filial piety) at the request of the importer (buyer) to guarantee the responsibility of paying for the goods.

2. In the L/C, the bank authorizes the exporter to issue a bill of exchange that shall not exceed the specified amount under the conditions specified in the L/C, with the bank or its designated bank as the payer, and to enclose the shipping documents according to the regulations, and collect the payment for the goods at the designated place on time.