Can anyone translate it for me? Documentary Credits

Irrevocable letter of credit.

Number: 0499***

Commencement date: 080723

UCP600 is applicable for letters of credit

The L/C is valid for 080829 and expires in China.

Issuing Bank: Agricultural Bank of Bangladesh.

Issued by & Address M Garments Ltd

54/8，west madertek，sabujbagh，dhaka，bangladesg.

Beneficiary: Dongtai Hongda Industry****.

No. 46, Xindong East Road, Dongtai, Jiangsu, China.

I can't speak Chinese, let alone English.

Q1: What is a Documentary Credit?

Q2: What does a Documentary Credit mean?

A documentary credit is a letter of credit in which the issuing bank pays with a documentary draft or simply a document. A document is a transport document that represents or certifies that the goods have been delivered. Such as bill of lading, railway waybill, air waybill, etc.

It also usually includes commercial documents such as invoices and insurance policies and is generally used in international **.

Features of Documentary Credits:

The Uniform Customs and Practice for Documentary Credits (i.e., UCP500) stipulates that Documentary Credits have the following three main characteristics:

1. The issuing bank bears the primary liabilities for payment

The payment method of L/C is guaranteed by the issuing bank with its own credit, so as a bank guarantee document, the L/C is the primary payment responsibility of the issuing bank. Even if the importer loses solvency after the issuance of the L/C, as long as the documents submitted by the exporter comply with the terms of the L/C, the issuing bank is also responsible for payment, and if the payment is found to be incorrect, it cannot be recourse to the beneficiary and the claimant bank.

2. The letter of credit is a self-sufficient instrument

Although a letter of credit is issued under a sales contract, once a single letter of credit is opened, it becomes an agreement outside the sales contract. Article 3 of UCP500 clearly stipulates that "the letter of credit is different from the sales contract or other contract on which the letter of credit is issued according to its nature."

Even if these contracts are invoked in the letter of credit, the bank has nothing to do with it and is not bound by it. ”

3. The letter of credit is pure documentary transaction

When dealing with the L/C business, the bank only relies on the documents and does not ask about the goods, and it only examines whether the documents submitted by the beneficiary are consistent with the terms of the L/C to determine whether it fulfills the payment obligation.

documentary credit

Documentary Credits, sometimes referred to as "banker's commercial credits" and "commercial letters of credit", provide security to the seller of goods of nationality to ensure that he will be paid after the goods have been shipped, even if the buyer is unable to pay or the buyer's notes are dishonoured.

Documentary credit: any agreement, however named or described, in accordance with the requirements and instructions of its customers (i.e., the issuing applicant) or on its own initiative (i.e., the issuing bank) of a bank (i.e., the issuing bank) acting on its own initiative, in accordance with the agreement, subject to the terms of the letter of credit, with the prescribed documents: to pay a third party (i.e. the beneficiary) or its designee, or to accept and pay the bill of exchange issued by the beneficiary; or authorize another bank to make the payment, or to accept and pay the bill; or authorize another bank to negotiate.

Documentary credit refers to the bill of exchange with shipping documents or only the bill of credit paid by shipping documents, and most of the international settlement is documentary credit.

Letter of credit is a certificate used by banks to ensure that the buyer or importer has the ability to pay, and it is a certificate that the bank conditionally guarantees payment, and has become a common settlement method in international activities.

Domestic letter of credit refers to the written commitment of the issuing bank to the beneficiary (seller) to pay a certain amount of money within a certain period of time according to the application of the applicant (buyer) and to pay the payment according to the documents specified in the letter of credit.

China's letter of credit is an irrevocable and non-transferable documentary credit.

1) Irrevocable letter of credit refers to the letter of credit that cannot be modified or revoked by the issuing bank without the consent of all parties involved in the letter of credit (i.e., the issuing bank, the applicant and the beneficiary) within the validity period after the letter of credit is issued.

2) Non-transferable letter of credit refers to a letter of credit in which the beneficiary cannot transfer the rights of the letter of credit to another person.

The nature of domestic letters of credit 2020 junior accountants "Fundamentals of the Economic Bank Group Law" Q&A selection.

The nature of the domestic letter of credit is: denominated in RMB, irrevocable documentary credit, 171 pages easily clear1(10.Cancellation) and said that the domestic letter of credit can be cancelled, so isn't it very contradictory, and laughing on the one hand to say that it cannot be revoked, and on the other hand, it can be cancelled?