Which is the issuing bank in the letter of credit, and what is the relationship between the issuing

If the L/C is an MT700 message, then the bank in the Sender column of the masthead is the issuing bank.

In the case of MT710 messages (L/C) or MT720 (L/C) transfers, the bank in 52A or 52D in the body is the issuing bank.

Extended Resources:

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 authorizes the exporter to issue a bill of exchange not exceeding 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, and to collect the goods at the designated place on time.

The general procedure for L/C payment is as follows: (1) The parties to the import and export shall enter the sales contract.

, clearly stipulate that payment shall be made by letter of credit. (2) The importer submits an application for issuance to the bank where it is located and fills in the application form for issuance.

And pay a certain deposit 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 L/C with the exporter as the beneficiary according to the contents of the application, and notify the L/C to the exporter through its ** bank or correspondent bank (collectively referred to as the advising bank) where the exporter is located. (4) After shipping the goods and obtaining the shipping documents required by the L/C, the exporter shall negotiate and pay 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 amount shall be indicated on the back of the L/C.

Contents:

1) A description of the letter of credit itself. Such as its type, nature, validity period and place of expiry.

2) Requirements for goods. Described according to the contract.

3) Requirements for transportation.

4) Requirements for documents, i.e., cargo documents, transport documents, insurance documents and other relevant documents.

5) Special requirements.

6) The issuing bank's responsibility to guarantee the payment to the beneficiary and the holder of the bill of exchange.

7) Most of the foreign witnesses are apostilled:"Unless otherwise specified, this certificate is in accordance with the ICC Uniform Customs and Practice for Documentary Credits, i.e. ICC Publication 600 (UCP600).

Transact. "8) T t reimbursement clause for interbank wire transfers.

Three principles of letter of credit:

1. The independent abstract principle of L/C transactions;

Second, the letter of credit is strictly in line with the principle;

III. Exception to L/C Fraud.

The advising bank is the principal of the issuing bank.

Issuing bank: It is a bank that accepts the application of the applicant for issuance of the certificate and opens it to the beneficiary with the delivery of the prescribed documents as the payment terms.

Notifying bank: A bank that accepts the entrustment of the issuing bank to fulfill the notification obligation to the beneficiary, and is responsible for verifying the authenticity of the L/C.

Issuing bank. It refers to the bank that accepts the requirements and instructions of the applicant for the issuance of the letter of credit (generally the buyer of the contract and the importer of the goods) or opens the letter of credit according to its own needs. The issuing bank is generally the bank where the importer is located.

The issuing bank is responsible for its obligations under the letter of credit in its own name. Although the issuing bank is bound by both the letter of application and the letter of credit itself, according to Article 3 of UCP500, the liability of the issuing bank for payment, acceptance bill or negotiation or performance of other obligations under the letter of credit under the letter of credit is not bound by disputes between the issuing bank and the applicant or between the applicant and the beneficiary. The issuing bank has no recourse against the beneficiary or other predecessors after the payment is made.

The obligation to open a letter of credit in strict accordance with the instructions of the applicant for the issuance of the letter of credit.

The applicant establishes a contractual relationship with the issuing bank by submitting the application for issuance, and the issuing bank must issue the L/C in strict accordance with the instructions in the application. If the issuing bank issues a letter of credit that deviates from the contents of the application, the issuing bank shall be responsible for all the consequences arising therefrom. Of course, the issuance act minimizes the liability due to the inconsistency between the letter of credit and the application for issuance, and often stipulates some exemption clauses in the application for issuance, and Articles 16 and 18 of UCP500 also make corresponding provisions on the exemption of the issuing bank.

If the L/C is inconsistent with the application for issuance due to these reasons, the issuing bank may be exempted from liability.

Notification line. It refers to the bank that notifies the letter of credit at the request of the issuing bank. The notifying bank is generally the first line of the issuing bank at the location of the exporter.

The advising bank shall not bear any other obligation except that it shall reasonably and prudently identify the apparent authenticity of the letter of credit and its amendment and notify the beneficiary of the letter of credit and its amendment in a timely and accurate manner.

In accordance with the provisions of China's Measures for the Settlement of Domestic Letters of Credit, the application for the issuance of L/C shall sign an agreement with the issuing bank, and at the same time submit a guarantee to the issuing bank; and shall submit the ** contract signed between it and the beneficiary. In terms of the issuing bank, it should set the payment term, validity period, document delivery period and effective point of the L/C according to the ** contract and the application for issuance.

Article 13 of the Measures for the Settlement of Domestic L/C shall sign an agreement clarifying the rights and obligations of both parties before issuing the L/C. The issuing bank may require the applicant to deposit a certain amount of deposit, and may require the applicant to provide legal and effective guarantees such as mortgage, pledge and guarantee according to the applicant's credit standing. To apply for the issuance of a letter of credit, the applicant must submit the ** contract signed with the beneficiary.

The issuing bank shall, in accordance with the ** contract and the issuance application and other documents, reasonably and prudently set the payment term, validity period, document delivery period and effective point of Suigao L/C.